? With home secured loans, people with poor credit histories: C.C.J?s, defaults, arrears, etc. can get good deals as long as they have collateral i.e. a home.
? Home Secured Loans offer low interest rates and easy repayment options.
? If a borrower has exceptional credit history and good financial standing he can expect amounts ranging up to 125% of his property value for home secured loans.
? The amount borrowed for home secured loans depends on the equity in your home. The equity normally ascends; primarily, because of home improvements made by the owner and secondly because of real estate value going up.
? Home secured loans are of immense help to people who prefer not to sell their home, but need resources to meet over some contingency.
? Home secured loans enable you to borrow £5,000 to £75,000 with repayment terms of 5 to 25 years.
? The loaned amount can be used for any purpose as per the borrower?s requirement.
Some lenders apply a charge to home secured loans if they are paid off before the due date. This is called a redemption penalty and can be up to two months interest ? a significant additional cost. If you consider repaying your loan earlier than agreed, then it may be wise to take home secured loans that do not have a redemption penalty, even if you pay a slightly higher APR.
Comparing interest rates offered on home secured loans from different lenders gives you a good idea of how competitive they are and familiarize you with interest rates. A variable rate option allows the interest rate to rise or fall with changes in the bank base rate, so your monthly repayments also fluctuate during the home secured loan term. A fixed interest rate implies that the rate you pay will remain constant throughout the loan term, regardless of any changes.
In Home Secured Loans, although the lender is not at risk, the borrower surely is because it?s your home that is put up as security i.e. should you face difficulties in repaying your loan, your home will be at risk of repossession. It is imperative that you make sure you can afford the repayments before signing the credit agreement. Home secured loans are usually easier to get an approval on as compared to unsecured loans. However, these loans could take a little longer to process because home secured loans necessitate valuation of collateral i.e. your home. But one thing is for sure, the time it takes is well worth the money saved on interest.Also See: Secured Loans, Home Secured, Secured Loan, Interest Rates, Secured, Loans, Loan