Secured loans are an option if you are considering borrowing a large sum of money for any legal reason
Many people may at some point during their working lifetime want to consider a secured loan. Secured loans can be seen as a popular alternative to remortgaging and particularly for those on favourable fixed interest rate deals who don’t want to forgo that benefit by remortgaging to another lender. Equally, if the mortgage deal is still in its early stages there may well be a substantial early redemption penalty (ERP) to pay for early termination.
It's likely that secured loans may carry higher interest rate charges and fees, they do nonetheless fulfil the needs of those looking to raise capital and for practically any legal reason! A secured loan can be used for many different purposes including, for example, debt consolidation, reducing a tax bill, improving your property, buying an asset and much more.
A word of caution; what many people don’t realise is that each time they apply for a loan their credit rating could be put at risk by too many searches going against their name.
That can easily be the case if after researching the market for secured loans you decide to make a number of sequential applications in the hope of finding acceptance or simply looking for the ‘best’ deal. You can avoid this risk by seeking qualified professional financial advice to help assess your personal circumstances before making any application.
A financial adviser will talk you through the pros and cons of a secured loan and help explain the different options which you may be open to you (including a remortgage if appropriate) towards helping you achieve your stated objectives. Once a thorough and confidential fact-find has been completed your adviser will be able to introduce you to a suitable lender right from the outset and that can help to avoid any costly mistakes and keep your application rate to a minimum to help protect your credit rating.
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