If you own your own home (or pay a mortgage), choosing a secured loan assures a lender that if you become unable to keep up the payments, the value of your home (your "equity", or the difference between what you paid for the home and its current value) will be able to help pay back the loan. Offering a lender this sort of assurance assists in finding more loan deals. In addition, people wanting to borrow tens of thousands of pounds may find it difficult to obtain a loan unless they are a homeowner and are willing to secure the loan on their property. Secured loans can be more appropriate for large amounts of money.
Giving lenders more secure sense of you as a borrower :-
- Helps when borrowing large amounts of money.
- Helps to find lower interest rates for your loan.
- Your chances of receiving a loan can be higher.
- You can end up paying back less money for borrowing using a secured loan compared with an unsecured loan.
Secured |
- Generally pay lower interest rates than unsecured loans.
- General loan for many purposes.
- Ideal for those who own their own home.
- Especially suitable when you're looking for loans of more than £10,000
- Your property is used to "guarantee" that you can pay the loan - which improves how lenders regard your circumstances when considering you for a loan.
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Unsecured |
- Generally pay higher interest rates than secured loans.
- General loan for many purposes.
- Ideal for tenants or those who do not own property.
- Especially suitable for small loans below £10,000
- Higher risk for lenders.
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Mortgage |
- Used to purchase property - a home or a building.
Presently Badcreditloans.co.uk is not offering a mortgage finding service.
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Remortgage |
- Using an existing property's value (it's "equity") against a loan.
- Using the property helps to secure a higher loan amount.
- Especially suitable for those wanting to move their mortgage from one company to a better one.
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Commercial |
- Loan for a commercial/business venture.
- Usually a minimum application of £25,000 is allowed.
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When you apply for a loan though Badcreditloans.co.uk, you are stating what sort of loan you would prefer and you're not committed to accepting that type of loan at this stage. We put you in touch with financiers based upon your initial selection who will discuss matters with you in more detail before you sign on the dotted line.