A secured loan helps to unlock equity in your house; this type of loan can be used for a wide variety of purposes such as home improvements, business financing, debt consolidation and credit repair.
Salford, Lancashire -- (SBWIRE) -- 05/14/2013 -- Times are tough for many people at the moment, if you own your own home and have equity in it a secured loan can be used to reduce your monthly outgoings in the short-term and even save you money over the long-term. A secured loan enables you to consolidate credit cards, personal loans, etc. the interest rates on this kind of none secured debt are often much higher than the interest rates available to home owners. Store and credit cards are not a good option for longer-term, hard-core borrowing since they often carry very high rates of interest.
When you take out a loan secured on your house the lender is taking what is known as a second charge on your property, a second charge means that the lender will still get their money back once the property is sold even if you do not keep up repayments on the loan that you take from them. Credit cards, store cards and personal loans are usually not secured on anything at all; this means that the lender is taking more risk so interest rates on unsecured credit are often much higher. Secured loans don’t only offer better interest rates than unsecured loans, they can also be taken over longer periods this means that monthly payments are probably a lot less than you are paying now and much more affordable.
Although the recent financial crisis has reduced the amount of equity available in most people’s homes and made secured loans difficult to get, one advisor says that they are having great success in helping their customers.
Baker Financial are experts in helping clients get approved for many different types of secured loans, they say their clients use this finance for various purposes including debt consolidation and credit repair, the company say that they can even help clients who have missed payments, etc. in the past by finding them bad credit secured loans. If you are struggling with your monthly payments, would like to save money on your interest payments or just want to make some improvements around your home give Baker Financial a call on 0845 094 2331.