UK secured loans – Their benefits and ways to obtain despite poor credit
In the UK, secured loans provide a great option for most homeowners to meet various financial needs. They can be used to consolidate unsecured loans and also for home improvement purposes. Secured loans are an extremely convenient way of getting loans that are large sums of money i.e. above £15,000 as unsecured loans do not usually cater for loan sizes higher than that.
Secured loans are based on the concept of using your property as collateral and receiving money in lieu of it. This is the reason why we always see financial experts advising most people to think long and hard before taking out a secured loan against their property. Your inability to repay the secured loan on time may lead to a foreclosure or a repossession of your property. Read on to know more about secured loans.
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UK secured loans – Their glowing benefits
If you’re sure about your repayment ability, taking out a secured loan can be of benefit to you in more than one way. They offer certain advantages when compared to unsecured loans. Here are some such benefits that can be taken into account before taking out a secured loan in the UK.
- Offers you ability to obtain a large amount of cash: Through a secured loan, you can easily obtain a large amount of cash. Since the lender uses your home as collateral, this kind of lending is considered as safe lending and hence the lenders never hesitate to lend the loan to the borrower.
- Relatively lower interest rate than unsecured loans: The interest rate on the secured loan is comparatively lower than that you get on unsecured loans. As the lender is secured through the collateral, you’re considered as a low risk borrower. This lowers the interest rates charged on such loans.
- Longer repayment period: The repayment period of secured loans is longer as compared to unsecured loans. Since the amount borrowed is usually a huge amount, the lenders keep a long repayment period of 30 or 15 years so that the borrower does not struggle while making the monthly repayments.
- Can be used for various purposes: A secured loan in the UK can be used for various financial purposes. You can use the proceeds for consolidating your unsecured dues by taking out a home equity loan or you can even use the money in paying for your home improvements.
UK secured loans – How to get one with poor credit score
If you’re a homeowner with good credit score, it is most likely that you’ll be able to get a secured loan with ease. But if you have a poor credit score, you need to keep certain things in mind before getting such loan. Check them out.
- Go for credit repair: The first and foremost step that must be taken before getting a bad credit debt consolidation loan is to go for credit repair. Order your credit reports and review them to identify any small errors in your credit report. Dispute any errors that you find and make your report error-free.
- Look for bad credit lenders: There are specific lenders who assist people in getting bad credit secured loans. It is your duty to look for such lenders and make sure you settle with the one that offers you the best and the most competitive rate on your bad credit loan.
- Contact a loan broker: Loan brokers usually have adept knowledge about all the lenders in the market and therefore, you must consult them for getting expert help. They will help you throughout the process of getting a secured loan even with a poor credit score.
The application process for secured loans is quite simple and easy. If you’re in sudden need of a large amount of cash, don’t hesitate to contact your nearest broker and get yourself a secured loan so that you can meet your financial needs.