Secured personal loans overlooked
Secured personal loans or second charge loans are being
overlooked by brokers as an alternative to remortgaging,
according to specialist
mortgage
broker Enhanced Wealth Limited.
The latest figures from the Council of Mortgage Lenders show
remortgaging as 46% of total lending, but warned:"There are
a lot of potential clients who represent a good borrowing
risk but do not have enough equity to meet their needs
through a remortgage. Others face early repayment charges,
have credit problems or just do not want to add to the size
or term of their loan. That is where the second charge loan
comes in."
Sean Horton, director of broker Enhanced Wealth Limited,
commented: "A second charge loan or
secured personal
loan can be a good option for clients with current
early repayment penalties. It is also useful if a clients
credit history has deteriorated since taking out their main
mortgage. In this scenario, remortgaging on an adverse
credit basis may cause the interest rate charged to be
higher overall than if a secured personal loan bad credit
was used for just the additional funds.
However, secured personal loans are by their nature more
risky so the interest rate charged will be higher than the
main mortgage. Secured loans can be obtained for up to 125%
of the value of the home and can be used for almost any
purpose. Secured personal loans bad credit are generally
available from £10,000 to £150,000 from a second charge loan
broker. The individual loan client's circumstances and loan
repayment terms will determine whether a second charge loan
or refinancing is more appropriate. We always recommend
clients seek advice from an
independent mortgage broker".
Where do you go if you want to take out a secured
personal loan?
Well you could surf the net find some loan companies,
contact them, wait for them to reply and tell them what you
want. Hopefully they will say yes to your loan application
but have you got the best deal?
If you approach a secured personal loan broker then they
will have access to many, many secured loan companies and so
can find you a good deal. A secured personal loans broker is
on your side and will want to get your business. They are
secured personal loan specialists and in many cases secured
loans can be for any purpose you wish. If you have bad
credit or poor credit then you will need a
secured personal loan bad credit.
For example, you could use the secured loan proceeds for:
a home extension
a new bathroom
a new kitchen
a swimming pool
a games room
debt consolidation
a new car
I'm sure you could think of lots of things to spend the
money on.
A Secured personal loan or second charge mortgage is a loan
which is secured on your property in the same that a
mortgage is secured. The mortgage will have the first charge
and the secured loan will have the second charge. You will
obviously need to be a homeowner to qualify.
So the next time you need a secured loan its best to contact
a secured personal loan broker first.
