UK Secured Loans Vary When It Comes To Interest Rates

By: Louis Rix

When it comes to the interest rate that is charged for UK secured loans then it can vary quite considerably among the different lenders. This is why it is essential not to take the first loan on offer or stick with high street lenders. When looking for the best deal on your loan you should consider allowing a specialist loans broking website to search out quotes on your behalf.

This not only means that you will be able to choose from some of the cheapest interest rates to be found. It also means that you will get the small print by way of the key facts of the loan delivered along with the quotes. This information holds contents such as the amount you will repay in total. It should also state the interest that will be added on and tell you about any added fees.

UK secured loans vary greatly; lenders will charge a certain percentage above the Bank of England base rate. The rate you are charged will vary on several factors including your credit rating. This is the first factor that will tell the lender how big a risk you are. If have a low rating then you will be charged a higher rate of interest than someone with an excellent score.

A secured loan means that the amount you borrow is secured by something of substantial value. In the majority of cases this will be your home or other property. The equity in your home is looked at when it comes to deciding how much you are able to lend. The majority of lenders will allow you to borrow the spare equity in your home although some will offer 125% of this. This is worked out by taking the value of your home and subtracting what is left to pay on the mortgage.

While you could choose to search around online yourself and you might get what seems to be a low rate of interest you might not have got the very best deal. A specialist will have access to lenders that the individual does not. It is with these lenders and the specialist's knowledge that you are able to gain peace of mind that the whole of the marketplace has been searched on your behalf.

UK secured loans can be used for almost anything and are very popular when it comes to consolidation loans. If you are up to your neck with repayments for loan or credit cards then you could be better off if you combined them. By paying off your existing debts and just having one creditor you can better manage your finances. Providing you get a very low rate of interest it would also mean you would save money each month. The secured loan is also one way that those who have low credit ratings can be approved for a loan. By taking this option it is possible to regain a good credit rating providing the repayments are kept up. It is essential to make sure you can afford the loan as your home would be at risk of being repossessed if you were to fall behind on the payments.

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