Secured loans: A viable solution to get huge cash
By: bernard ethen | Posted: 27th April 2007
Summary: A secured loan option is a viable solution for the homeowners, who can seek a loan according to the equity present in their home.
There are some needs where you require huge cash, in order to meet your exact requirements. The needs can be anything like meeting up the huge expenses of a wedding ceremony, or for the purpose of doing a major home renovation.
No lender can give you a huge amount of money without having a security. That is why the lenders prefer to offer a secured loan while offering a large loan amount. The secured loan option necessitates the presence of collateral. A secured loan is also called as a second charge on a mortgage.
Loan seekers can seek a larger loan amount against the equity present in their home. Generally, the lenders offer a loan amount up to 80 percent of the equity present in their home. But, there are some specific lenders who can offer you a loan amount up to 125 percent of the equity present in their home. So, you can just imagine how big a loan amount you can borrow with this loan type.
Generally, the lenders offer a loan amount from £ 5000 to £ 250000 with secured personal loans . You can very well cater most of your financial needs with such a big loan amount. The repayment terms are longer as compared to an unsecured loan type. Usually, the borrower gets a repayment term from 5 to 25 years.
The processing time for secured loans is comparatively larger as compared to unsecured one. A week’s time is required to get the secured loans approved. This is because a lot of time is required in the valuation of the collateral.
The lenders prefer to offer a variable rate of interest with this loan type. The rates may vary according to the base rates of the Bank of England. But, the interest rates may only go up and down throughout the loan tenure. Therefore, it is advisable to read the loan agreement carefully when you are availing a loan.
There are various lending agencies like high-street banks, building societies and the private lenders which offer a secured loan type. It is advisable to shop around in the loan market, which may help you in getting a good loan deal.
About the Author: The author is a business writer and has written authoritative articles specializing on secured loans and personal loans in the finance industry. You can find more information about Loans at our website.
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