Posts Tagged ‘Products Supplies’

The benefits of secured loans

September 25th, 2022

Borrowing money has become more and more popular in the UK over recent years,Guest Posting and this is partly due to the fact that it has become far easier to borrow money. The rising popularity of consumer finance has also been aided by the wide variety of deals and the low interest rates available these days. Secured loans have become very popular with those that own property, and this type of finance deal offers affordability and excellent value for money. Secured loans are available from a wide pool of lenders, which means that consumers have plenty of choice when it comes to selecting and applying for secure loans.

The amount available to borrow with secured loans is dependant upon the amount of equity available in your property, which means the amount of the market value minus any loans or mortgage outstanding on it. There are many benefits available with secured loans, and you will find that this type of finance is one of the most cost effective options available. With secured loans you can look forward to far lower interest rates than most standard, unsecured loans, and this is because there is less of a risk to the lender since the loan is secured against an asset.

Secured loans also offer far high borrowing levels than unsecured loans, although the amount available to borrow will depend in your equity. However, you could find yourself eligible to borrow tens of thousands of pounds with secured loans, which could prove invaluable if you are looking to raise a large amount of finance for just about any purpose. The repayment period with secured loans is also far longer tha

Secured Loans – How to Get Quickly Accepted For a Secured Loan and Get a Better Rate

March 22nd, 2022

When a lender receives a secured loan application form he only has two areas on which to base his decision – you and the property. If he can put a tick in both of these boxes then you will get your loan at a good rate.

However, it is possible to still get your loan if either you or the property are not A1.

This is one of the good things about secured loans, they allow you to obtain a loan when other sources of finance may not be available.

Secured loans – You

Unfortunately, most things in this day and age are broken down and put into boxes and that includes you when you apply for a secured loan.

Your boxes will be:

o Your employment/ self employment
o How many outstanding loans you have
o Your usable (free) monthly income
o Your credit rating
o How you have treated your current (and previous if less than 12/ 24 mths) mortgage company

Secured loans – how to improve “you” in the eyes of the secured loan lender

Most applications for secured loans are made through a broker as most lenders do not like to gather all the information needed to process a secured loan. There is also a lot of overhead in this process which they prefer the broker to pay for.

Secured loans – rule 1

Make sure you find yourself a good secured loan broker. The secured loan lenders are not going to like me saying this but all brokers are not equal in the eyes of the lender. The better ones earn more money per application and get more secured loans paid out, as a percentage, than others.

These both directly effect you as the more the lender pays the broker the less of a fee he will need to charge you and the other reason is that you are more likely to get you loan paid out (and at possibly a lower rate) by using a well established secured loan broker.

Secured loans – rule 2

Work with you broker – not against him. I know it is a pain to keep having to produce paperwork but the more you have, the less pain you will receive when your full loan application reaches the secured loan lender.

Secured loans – rule 3

Go through your available income with your broker and get him to explain how the lender, he is putting you with, is working out your available income calculation. You might find you get a better rate if you do a bit of debt consolidation.

If you are self employed but have regular contractual work that you can prove goes back a few years, then you may be able to argue for a better rate. Self employed applicants for secured loans are usually penalised with the rate as they are considered a high risk.

Secured loans – rule 4

Your credit rating is nowhere near as important for secured loans as it is for personal loans (unsecured). However, it is still important if you want a good rate. Lenders of Secured loans (like most lenders) don’t like to see arrears on a credit report. A credit report will show the lender how you have paid your credit cards and loans over the last 12 months. It will also show any defaults or county court judgements.

Most secured loan lenders will ignore one months arrears on most loans as this can be argued that it is just a late payment. When you start to get to two months or more then you need a good (preferably provable) explanation or your rate will start to go north.

One thing secured loan lenders hate is current arrears when you apply to them for a secured loan. So, if you can, make sure your current commitments are up to date when you apply and this will keep your rate down.

Secured loans – rule 5

How you have paid your mortgage is sometimes more important than your credit report as the secured loans lenders see themselves as an extension of your mortgage and the best way they can see if you are going to pay them is to see how you have paid your current mortgage.

So, if you can, make sure your mortgage is up to date when you apply and if you have had any arrears then you will need a good explanation to keep your rate down.

To speed up you application you could get proof of your last 12 months payments from you mortgage lender and proof of the outstanding balance.