Why Choose A Secured Loan?
 

How to use a secured loan to consolidate your debts?
Managing too many debts with different principals and interest rates isn’t quite easy, especially if you have limited monthly income and lots of obligations to meet. Are you considering debt consolidation to get your debts simplified? Then, you are just on the right track. Debt consolidation will help you replace your several debts with a single debt that you can pay off at a fixed interest. If you are not quite keen on paying some extra bucks to debt relief companies or lawyers for debt consolidation, then the best way out is to use a secured loan to consolidate your existing debts.
A secured loan is one that you take out against some collateral, such as a house, car, jewelry, real estate property or any other asset. Then the funds are used to pay off your existing obligations. Secured consolidation loans are offered by most of the banks and other lending institutions. But before you take out one, do take the following two things into account:
·        Collateral
The collateral is very crucial to a secured loan. On it, depends the loan amount and the interest it will carry. As mentioned above, collateral can be anything, ranging from a house to jewelry. However, normally home is one’s most valuable asset that can be quite helpful in times of need.
If you have considerable equity in your home, then you will be able to obtain a second mortgage or a home equity line of credit. The more equity you have, the lower interest and the greater loan money you can expect.
But, if you are not willing to risk your house, then you can use other valuable assets such as a car, boat, real estate property as collateral. Depending on how much you owe, you should determine what you want to use as collateral. Always remember, risking your transport or luxury is wiser than parting with your home. So, judge your debt situation thoroughly before you select your collateral.
·        Look for the best interest rate
You are already in a debt mess and you would never want to worsen your situation. So, look out for a low interest loan if you want to consolidate your debts. Interest rates vary from one bank to another.
Compare the interest rates and check out the collateral provisions and other loan terms so you can go for the best option. Depending upon the terms of the loan and the amount you need, you can strike the best deal and can lower the overall interest on your secured consolidation loan.
Lower interest will make your monthly payments affordable and the loan money will be dedicated mostly towards paying the principal.
Since the collateral lowers the interest on secured loans, they are preferred for the purpose of debt consolidation. However, if you are not sure as to whether you should go for a secured consolidation loan, then you should consult an experienced credit counselor right away and seek out other ways to simplify your obligations.

Finding the best loans - either secured or unsecured  

Most people in the UK need to borrow money through a loan at some point in their lives and for a variety of different purposes. Whether its to consolidate existing debts, or make home improvements, or take that luxury holiday in the sun, choosing the best secured loan may be a daunting task particularly if you’re not familiar with the different types of loans available.

Generally speaking most loans are either secured against a property or unsecured requiring no security at all, however very often BOTH are called personal loans as they are for personal use as opposed to any commercial use.Unsecured loans are available is various forms including small pay day loans, personal loans supplied by doorstep lenders and loans available through pawn brokers.

Secured loans are always secured on a property and usually by way of a 2^nd charge on the equity (the 1^st charge is usually your mortgage). Secured loans are sometimes also called second charge loans, home loans, home equity loans and secured homeowner loans. Trying to determine which is the best loan for you largely depends on whether you’re UK homeowner or not. If you’re a UK homeowner you have the choice of whether to consider a secured loan or an unsecured loan. If you’re not a homeowner and either rent a property or live with parents, then a secured loan is not an option and all you can consider is an unsecured loan.
As a homeowner with a choice of either, you must now consider how much you want to borrow and how long you want to repay the loan over (the term). For secured loans the loan amounts are usually from £5,000 - £100,000 with terms from 5-30 years. On unsecured loans you are usually restricted to around £15,000 with a maximum term up to 10 years with only certain lenders.

Therefore if you’re looking for £20,000 over a 5 year term a secured loan is the only option available to you as you’d be over the maximum available unsecured. Similarly if you wanted just £5,000 but taken over 20 years, perhaps to keep the repayments low, a secured loan would be the only option due to the term required.
If you’re considering a loan amount and a term that would fit either unsecured or secured lenders the next thing to consider is how quickly you need the money and what interest rate you’re likely to pay. Unsecured loans are usually quicker to arrange but interest rates are higher as lenders don’t have a property as security. Secured loans usually take around 3-4 weeks to complete as certain references are required which take time to arrive, including one from your mortgage company. Interest rates on secured loans are usually cheaper as lenders have a charge on your property.

Secured loans can be used for any purpose including debt consolidation loan to clear other existing and more expensive loans, home improvements or to raise capital for your business if you’re self employed. Secured loan lenders also consider more varied and problematic circumstances, including homeowners with a bad credit history and self employed with no proof of income, who will often find it extremely difficult to find unsecured loans.

Secured loans are only available to home owners, as the loan takes a legal charge on the borrower’s property as security for the loan. If the borrower should default on a secured loan, the lender has the right to reclaim their losses from the value of the property held as security, which can often mean repossession of a person’s home, although this should only be adopted as a last resort by the lender. The above is a very brief outline of the different types of loan which are available on the market at the moment and although it is intended to give an overview of what is available to borrowers, it is not definitive and there are many variations.

Taking out any kind of loan is a large commitment and a potential borrower should think very carefully before rushing into the first loan which is offered to them. If there is any doubt as to which is the best way to borrow money, a person should take professional advice from a loan broker, who will be able to guide them through the various options and find the most suitable loan to meet their needs.

Appyling for a UK Secured Loan.

If you’re a UK homeowner and looking for finance, a secured loan may just be the answer you’re looking for particularly if you have equity in your property.  Applying for a secured loan can be much easier than getting an unsecured loan. this is because any secured loan lender will take the view that their risk is lower, given that you would be putting your property up as security for the loan.
If you’re a homeowner with either a residential or buy to let property which has sufficient equity you are much more likely to be considered for a secured loan whatever your credit profile. Some secured loan lenders will consider UK homeowners with a bad credit history and some will consider self employed without full accounts of proof of income.
A UK secured loan is much quicker to arrange than a remortgage, and usually takes around 3/4 weeks from applying for the loan to receiving the cheque. Secured loans are also becoming more popular with homeowners who are fixed into a mortgage deal which would incur redemption penalties it they were to remortgage.  By taking out a secured loan you avoid these often costly redemption penalties and keep your existing low rate mortgage deal.
As lenders will securing the loan against your home, the perceived risk to them is lower and therefore they are able to charge cheaper rates of Interest secured loans than unsecured loans. These rates vary from lender to lender and also depending on your  own individuaul circumstances. For example if you have a bad credit history (i.e. arrears, CCJ’s or defaults etc) a lender may decide that they will consider a loan for you but only a one particular loan plan attracting a slightly higher rate than for someone with a clean credit profile. Similarly if you’re self employed without any accounts and looking to self certify your income there are specialist secured loan lenders we can consider for you who are sympathetic to your circumstances but accept that you would be a higher risk and so charge a slightly higher rate.
Secured loans have many additional benefits over unsecured loans the main ones being the higher loan amounts available £5,000 - £100,000, the longer terms you can take the loan over 5-30 years and the cheaper rates of interest..
Applying for a UK secured loan is quick and easy through More4 Loans, and can be done online and with a quote provided to you in minutes. Finding the best secured loan deals requires the services of a secured loan broker such as More4 Loans as we use our expert knowledge of the loan market to search for the best deals fast. Through our wide panel of lenders and the experience gained from dealing with these lenders we can establish in minutes which is the best lender according to your individual circumstances.
Secured loans are available for any purpose including debt consolidation, home improvements and even that luxury holiday abroad. All loans are secured on property and consolidating unsecured debts may increase the total amount repaid and the term of the these loans.

Secured Loans V Unsecured Loans ? 

Getting debt help from professionals

More and more people worry about not being able to manage their finances and thus getting into debt. The problem is even more serious with the advent of different credit cards and the increase of the number of loan-types existing on the market. So people must take this issue seriously by using their cards in a responsible manner and taking out a loan only if they are absolutely sure they can repay it.

Nevertheless, there are many cases when people lose control over their personal finances. It may happen that they go to a dream-holiday and they use their credit cards to pay for the expenses. This might be the beginning of financial difficulties. But it may also happen that one needs funds urgently in order to pay medical expenses for instance, and in this case nobody can wait and think about their ability to pay the loan back. So people take out an appropriate loan-type and soon realise they run out of money, so they cannot pay off the loan. Such individuals can get debt help from professionals who have the needed knowledge to assist them in getting debt-free in a relatively simple way. Getting professional help is important as this way one will make the necessary steps towards a real solution, and they can become free of debt in a shorter time than trying debt-elimination individually. A much higher percentage of those who are in debt, manage to get out of it with  professional help. So people who want a 100% success should not hesitate and should get debt help from a professional advisor!

What kinds of professional solutions exist to get out of debt? The most commonly used solution is debt consolidation, which means the person who is in debt takes out a loan with which he/she pays off all of his/her other loans. But this option is only recommended for those who have serious debt problems or multiple loans to pay off. People who do not want to take out another loan are advised to go to a debt settlement company and arrange their financial problems with settling their debts. For those, however, who realize their debt-problems earlier and need help in managing their finances in such a way to prevent a more serious debt, the appropriate solution is the so-called debt management plan.  

People need to understand why it is better to get help from a professional when it comes to debt consolidation. It is true that it would be possible for the debtor to talk with his/her creditors and try to negotiate better loan terms individually. But this requires not only time and patience but also specific knowledge to argue well and implement an appropriate consolidation-strategy. This is not something anyone is capable to do. Debt counsellors, on the other hand are trained to implement such a strategy, and they possess specific communication and business skills to negotiate better loan-terms on behalf of the debtor. Creditors will agree to decrease interest rates and eliminate the accumulated late-payment fees as in turn they get their money back. The debtor will have a single loan instead of multiple ones which is used to pay off his/her existing loans. The new debt consolidation loan will have more affordable and realistic monthly payments and better overall loan terms, thus helping the debtor to get out of debt in maximum four-five years.

The second solution, debt settlement is similar to the first. Like debt consolidators, here the debt-settlement company is responsible for negotiating on the debtor’s behalf with creditors. This process usually works as follows: the settlement company manages to negotiate with the creditors that they will get back only a certain percentage of the total amount owed to them. But this money is transferred by the settlement company to the creditors at once, so they can reinvest it. The debtor in turn has to repay this amount to the debt settler based on the terms and conditions they agreed. The advantages for the debtor are clear: there will be no more harassing creditor calls, there will be a single lender instead of many, and the total amount that needs to be repaid will be lower. Like with debt consolidation, with debt settlement the debtor also needs like four-five years to become debt-free.

Finally for those individuals who do not have such serious debt problems, the best choice is the debt management plan. This does not require them to take out a new loan to pay off the existing loans, but it provides help with restructuring people’s personal finances to prevent them from getting into more serious debt. One can try to create a savings-plan individually, but this is rarely successful. Only those who are very persistent to stick to their initial plans can succeed in it. But as we talk about people who are already in debt, this is a sign of their inability to manage their finances properly. The best is, therefore, to ask a financial consultant who can implement solution-schemes for each particular situation. This professional plan will surely assist the client to manage his/her finances in such a way to become debt-free. The debtor is responsible for describing his/her finances and spending habits explicitly, as well as to provide the advisor with all the necessary information concerning the debtor’s debt. Debt management plans can only be efficient if the debtor sticks to the plan! But if one changes his/her lifestyle, and sticks to the budget and spending-limits prescribed by the professional advisor, the success is guaranteed!