| A
secured loan, which is a loan only available to homeowners as
it must be secured on property, is a good way for a homeowner
to raise funds for a number of purposes.
The interest
rates for a secured loan currently commence at about 8% for
employed applicants with a good credit rating
.
However
even for applicants with poor payment profiles a secured loan
is still possible but the interest rate will be considerably
higher.
For the
self employed the position, as regards a secured loan, is
very different now than it was before the credit crunch.
In the
past self employed borrowers could self declare their own
earnings without any further proof being required?
They had
simply to write on a letter head that they certified that
their net profit was whatever, sign it and that sufficed.
Now an
accountant's letter at least is a requisite and sometimes
the lender will ask for full accounts.
For people
who fit the current underwriting, secured loans are a great
way to borrow money.
Apart
from the interest rates being good, they can be repaid over
anything from a five year to a twenty five year period making
the repayments tailor made to suit individual needs.
They can
be used for almost any legitimate purpose, but many people
do not appear to realize this.
Some people
are lead to believe that a secured loan has only one use and
that is for debt consolidation.
They are
certainly a good way to consolidate outgoings on credit cards,
etc., saving money and simplifying finances, but they have
many more uses than this.
A secured
loan can be used to buy a car, a caravan, a motor home, a
boat, etc. etc.
It can
also be used to carry out home improvements, and with cash
in hand there are savings to be made by funding improvements
in this way.
Homeowner
loans have so many uses such as paying for the longed for
wedding on a magical tropical beach, going to see the premiere
of your favorite film star's latest film in a far away foreign
city,.
A secured
loan can be used to buy your holiday home abroad.
Some lenders
are not prepared to grant loans for second home purchase,
and so it is always best to check before applying that the
purpose of the loan is not against those particular lenders
rules.
Paying
for a holiday home in the UK or abroad is simple when a loan
of this sort is used to fund it.
Using
a secured loan to buy a second home means that there is no
need to have a deposit of about 30%.
With so
many property bargains in the market at the moment there will
never be a better opportunity to buy a second home whatever
country you wish to buy in.
There
are many Brits selling up in the Spanish Costas and if Spain
is your country of choice this is a good time to realize your
dream.
As is
obvious the better things in life are available to those who
release some equity in their property to make life more enjoyable.
|
