08 Mar 2008 12:27:47 | Chileshe Mwape
A secured Personal loan is any personal loan that is secured on
your home or property. Secured loans are more easily accessible
to those with a poor credit record. This means that persons who
are self-employed, or who have recently changed jobs, or who
have adverse credit (ccjs, arrears, defaults, etc.) can take out
a secured loan.
If you’re a homeowner, you may get a lower rate through a
secured loan using your property as security. If you borrow
money using a mortgage as security you are agreeing that the
lender can claim the mortgaged property if you fail to keep to
the agreement. The risk to the lender is reduced so the interest
rate offered is lower. This is why secured loans tend to be
cheaper than unsecured loans and other forms of borrowing. The
lender has the added benefit of security, which provides
protection in the event of your inability to repay.
You can borrow larger amounts and repay over a longer period.
The amount available usually ranges from £3,000 to £50,000,
although some lenders will consider lending more. If you wish to
borrow a larger amount or if you require a longer period in
which to repay the loan, secured loans may be the most suitable
for you.
You can consolidate more expensive borrowings into a single much
cheaper monthly payment. You may choose to take out a secured
loan in order to consolidate debts and replace high-interest
loans with a low-rate loan. The loans being consolidated may
include higher purchase loans, unsecured loans and credit cards.
Before you take out a secured loan, make sure that you can
afford the monthly repayments. Also, read the loan agreement
carefully and pay particular attention to the rate of interest
required, the term of the loan, the repayments required and the
total amount payable. If you fail to repay the loan, the lender
may repossess your property or home and sell it to repay the
loan. Your home is at risk if you do not keep up repayments on a
mortgage or other loan secured on it.
About Author :
© Copyright 2005, Bwalya Mwaba writes for the Secured Personal
Loans website. To apply for a secured personal loan online, just
fill out a simple form at:
http://www.secured-personal-loan.org.uk/ 
