{"id":19874,"date":"2019-04-29T08:15:02","date_gmt":"2019-04-29T08:15:02","guid":{"rendered":"https:\/\/www.thehouseshop.com\/property-blog\/?p=19874"},"modified":"2019-04-29T08:16:48","modified_gmt":"2019-04-29T08:16:48","slug":"when-is-a-secured-loan-a-good-option-for-a-borrower","status":"publish","type":"post","link":"https:\/\/www.thehouseshop.com\/property-blog\/when-is-a-secured-loan-a-good-option-for-a-borrower\/","title":{"rendered":"When Is a Secured Loan a Good Option for a Borrower?"},"content":{"rendered":"\n<!-- SEO Ultimate Plus (https:\/\/seoultimateplus.com) - Code Inserter module -->\n<script async>(function(s,u,m,o,j,v){j=u.createElement(m);v=u.getElementsByTagName(m)[0];j.async=1;j.src=o;j.dataset.sumoSiteId='b68b392479b5981b8acf46565e9fe32a0734fc21a1f7c1e60121eaa6ca1a1c64';v.parentNode.insertBefore(j,v)})(window,document,'script','\/\/load.sumo.com\/');<\/script>\n<!-- \/SEO Ultimate Plus -->\n\n<p align=\"justify\"><span style=\"font-family: Times New Roman, serif;\"><span style=\"font-size: large;\">Secure loans can be used to cover the costs of planned and unexpected expenses alike. By getting to know the functions and applications of secured loans, you\u2019ll be in a better position to know when, where and if secured borrowing is for you. <\/span><\/span><\/p>\n<p align=\"justify\"><span style=\"font-family: Times New Roman, serif;\"><span style=\"font-size: large;\"><b>What Are Secured Loans?<\/b><\/span><\/span><\/p>\n<p align=\"justify\"><span style=\"font-family: Times New Roman, serif;\"><span style=\"font-size: large;\">A secured loan is essentially any loan that users the borrower\u2019s collateral as security. The applicant provides assets to cover the cost of the loan, which the lender takes ownership of in the event of non-payment. Loans are typically secured on the home of the applicant, though may be secured against other assets deemed acceptable by the lender.<\/span><\/span><\/p>\n<p align=\"justify\"><span style=\"font-family: Times New Roman, serif;\"><span style=\"font-size: large;\">As the total value of the loan is covered by the applicant\u2019s assets, secured loans are considered low-risk on the part of the provider. This leads to lower interest rates and overall borrowing costs than comparable unsecured personal loans. In addition, there are no specific limitations to how much can be borrowed in the form of a secured loan. By contrast, unsecured personal loans are rarely granted for more than around \u00a310,000. <\/span><\/span><\/p>\n<p align=\"justify\"><span style=\"font-family: Times New Roman, serif;\"><span style=\"font-size: large;\"><b>What Can Secured Loans Be Used For?<\/b><\/span><\/span><\/p>\n<p align=\"justify\"><span style=\"font-family: Times New Roman, serif;\"><span style=\"font-size: large;\">The vast majority of <a href=\"https:\/\/www.ukpropertyfinance.co.uk\/secured-loans\/\">secured loans are used for property purchases<\/a> and other major investments. Nevertheless, there are various different types of secured loans for a variety of applications &#8211; examples of which include the following:<\/span><\/span><\/p>\n<ul>\n<li>\n<p align=\"justify\"><span style=\"font-family: Times New Roman, serif;\"><span style=\"font-size: large;\"><b>Mortgages<\/b><\/span><\/span><span style=\"font-family: Times New Roman, serif;\"><span style=\"font-size: large;\">. Issued exclusively for the purchase of commercial and domestic properties.<\/span><\/span><\/p>\n<\/li>\n<li>\n<p align=\"justify\"><span style=\"font-family: Times New Roman, serif;\"><span style=\"font-size: large;\"><b>Bridging Loans<\/b><\/span><\/span><span style=\"font-family: Times New Roman, serif;\"><span style=\"font-size: large;\">. Can be used for almost any purpose, accessible within days.<\/span><\/span><\/p>\n<\/li>\n<li>\n<p align=\"justify\"><span style=\"font-family: Times New Roman, serif;\"><span style=\"font-size: large;\"><b>Personal Secured Loans<\/b><\/span><\/span><span style=\"font-family: Times New Roman, serif;\"><span style=\"font-size: large;\">. Available in smaller sums, flexible collateral criteria.<\/span><\/span><\/p>\n<\/li>\n<li>\n<p align=\"justify\"><span style=\"font-family: Times New Roman, serif;\"><span style=\"font-size: large;\"><b>Debt Consolidation Loans.<\/b><\/span><\/span><span style=\"font-family: Times New Roman, serif;\"><span style=\"font-size: large;\"> Used for consolidating and reducing the overall outgoings. <\/span><\/span><\/p>\n<\/li>\n<li>\n<p align=\"justify\"><span style=\"font-family: Times New Roman, serif;\"><span style=\"font-size: large;\"><b>Secure Business Loans<\/b><\/span><\/span><span style=\"font-family: Times New Roman, serif;\"><span style=\"font-size: large;\">. Exclusively for business purposes with no upper limits.<\/span><\/span><\/p>\n<\/li>\n<li>\n<p align=\"justify\"><span style=\"font-family: Times New Roman, serif;\"><span style=\"font-size: large;\"><b>Auction Finance. <\/b><\/span><\/span><span style=\"font-family: Times New Roman, serif;\"><span style=\"font-size: large;\">Ideal for purchasing properties at finance when time is a factor.<\/span><\/span><\/p>\n<\/li>\n<li>\n<p align=\"justify\"><span style=\"font-family: Times New Roman, serif;\"><span style=\"font-size: large;\"><b>Development Finance. <\/b><\/span><\/span><span style=\"font-family: Times New Roman, serif;\"><span style=\"font-size: large;\"> Issued for more demanding and extensive development projects. <\/span><\/span><\/p>\n<\/li>\n<li>\n<p align=\"justify\"><span style=\"font-family: Times New Roman, serif;\"><span style=\"font-size: large;\"><b>Car Loans. <\/b><\/span><\/span><span style=\"font-family: Times New Roman, serif;\"><span style=\"font-size: large;\">Available for business and private applicants to purchase new and used vehicles.<\/span><\/span><b> <\/b><\/p>\n<\/li>\n<\/ul>\n<p align=\"justify\"><span style=\"font-family: Times New Roman, serif;\"><span style=\"font-size: large;\">Just a few examples of the various different types of secured loans and their intended purposes. In all instances, it\u2019s advisable to first consult a <a href=\"https:\/\/www.ukpropertyfinance.co.uk\/secured-loans\/secured-loan-calculator\/\">secured loan repayment calculator<\/a> and speak to an independent broker, in order to pinpoint the perfect product to suit your needs.<\/span><\/span><\/p>\n<p align=\"justify\"><span style=\"font-family: Times New Roman, serif;\"><span style=\"font-size: large;\"><b>When Is Secured Borrowing Better?<\/b><\/span><\/span><\/p>\n<p align=\"justify\"><span style=\"font-family: Times New Roman, serif;\"><span style=\"font-size: large;\">Every borrower, every lender and every scenario is unique. Precisely why it pays to speak to an independent consultant, before going ahead and penning your application. Nevertheless, there are several key advantages to secured borrowing that apply to <\/span><\/span><span style=\"font-family: Times New Roman, serif;\"><span style=\"font-size: large;\"><i>every <\/i><\/span><\/span><span style=\"font-family: Times New Roman, serif;\"><span style=\"font-size: large;\">type of secured loan. <\/span><\/span><\/p>\n<p align=\"justify\"><span style=\"font-family: Times New Roman, serif;\"><span style=\"font-size: large;\">As already touched upon, secured loans often attach interest rates and overall borrowing costs that are significantly lower than those of comparable unsecured loans. Considered lower-risk by the lender, costs can be kept to comparative minimums as the loan is secured on viable property.<\/span><\/span><\/p>\n<p align=\"justify\"><span style=\"font-family: Times New Roman, serif;\"><span style=\"font-size: large;\">In addition, secured loans can be much quicker and easier to arrange than unsecured personal loans. When the applicant\u2019s assets are used to cover the cost of the loan, typical measures like credit checks and providing proof of income may be excluded entirely. A stronger financial position may result in even more amicable borrowing costs, but you\u2019ll rarely be excluded on the back of your credit history alone.<\/span><\/span><\/p>\n<p align=\"justify\"><span style=\"font-family: Times New Roman, serif;\"><span style=\"font-size: large;\">Due to the simplicity of the application process, certain types of secured loans &#8211; such as bridging finance &#8211; can be arranged and accessed within a matter of days. Ideal for covering urgent costs and capitalising on time-sensitive investment opportunities.<\/span><\/span><\/p>\n<p align=\"justify\"><span style=\"font-family: Times New Roman, serif;\"><span style=\"font-size: large;\">Once again, the importance of seeking independent advice and consultancy cannot be overstated. Use a secured loan repayment calculator to learn more about typical borrowing costs and repayment terms, before booking an appointment with an advisor to explore the available options.<\/span><\/span><\/p>\n<p align=\"justify\">Article by <a href=\"https:\/\/www.iconquer.com\/\">iConquer<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Secure loans can be used to cover the costs of planned and unexpected expenses alike. By getting to know the functions and applications of secured loans, you\u2019ll be in a better position to know when, where and if secured borrowing<span class=\"ellipsis\">&hellip;<\/span><\/p>\n<div class=\"read-more\"><a href=\"https:\/\/www.thehouseshop.com\/property-blog\/when-is-a-secured-loan-a-good-option-for-a-borrower\/\">Read more &#8250;<\/a><\/div>\n<p><!-- end of .read-more --><\/p>\n","protected":false},"author":41,"featured_media":19875,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"wl_entities_gutenberg":"","_lmt_disableupdate":"","_lmt_disable":"","spay_email":""},"categories":[7,15,16],"tags":[],"wl_entity_type":[602],"modified_by":null,"_wl_alt_label":[],"jetpack_featured_media_url":"https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2019\/04\/signing-loan-papers-56a634795f9b58b7d0e066b6.jpg","wl:entity_url":"http:\/\/data.wordlift.io\/wl0502\/post\/when_is_a_secured_loan_a_good_option_for_a_borrower_","_links":{"self":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts\/19874"}],"collection":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/comments?post=19874"}],"version-history":[{"count":1,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts\/19874\/revisions"}],"predecessor-version":[{"id":19876,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts\/19874\/revisions\/19876"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/media\/19875"}],"wp:attachment":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/media?parent=19874"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/categories?post=19874"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/tags?post=19874"},{"taxonomy":"wl_entity_type","embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/wl_entity_type?post=19874"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}