A secured personal loan is the generic term for a loan. Essentially, a secured personal loan is one that is secured against your property.

It is a low interest loan designed exclusively for homeowners. What this means is that, by taking out a secured loan, you are using your house to guarantee the loan repayments. A Secured Personal Loan enables you to make use of this asset which will provide security for your loan.

Secured personal loans are the best loans for homeowners, of course there is a greater risk attached to this loan as the home is put up as a collateral. The home is under risk if the repayments are not paid duly. If you continually fail to make repayments on a secured loan, you could be putting your house at risk.

Because the risk is lower for the lender than on an unsecured loan it is possible to get better interest rates than on a loan that is not secured on a property. This is also the reason that lenders are able to offer higher sums than for unsecured loans.

So, why do people take out secured personal loans? Well, firstly you may want to borrow money in order to increase your home's value by making improvements to your home. Others may take on a debt consolidation loan, which means that you take on a large loan for a long period, which pays, off your other loans and credit cards and you end up paying a smaller monthly payment than you were paying with all of your other loans together.

Many people choose secured loans as opposed to unsecured loans because the interest rate is often lower. Typically secured loans are offered at low interest rates, as the risk taken on by the loan company is less.

The application process is a lot longer with secured loans than with unsecured loans, due to the fact that your loan provider will need to value your home.

However, it is easier for you to be approved for a secured loan because you are using your home as security. It is very likely that your loan is far smaller than the value of your home, so the loan provider will view it as less of a risk.

With a secured personal loan you can borrow from ?5,000 to ?75,000 with low monthly repayments. Loans secured on property can be repaid over a period of between 5 years and 25 years .

A Secured Personal Loan has the following advantages:

Offers a flexible and fast way of raising cash

Loans are available for most purposes including clearing other expensive credit commitments

Since your property is used as security for the loan you will be able to take advantage of the special interest rates available

There are usually no valuation or legal fees to pay

Choice of sum borrowed at a monthly repayment you feel able to manage comfortably

Loans are available over a relatively short term

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About The Author
John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the http://www.directonlineloans.co.uk website.