Writen by John Mussi
Most people have no idea what a personal secured loan really is. It is actually just a fancy term for a generic loan or a homeowner's loan. The lender gets their security on the loan from the borrower in the form of some type of secured property, such as one's home or land. The personal secured loan does not rest on the promise of payback alone. You would have to have some type of collateral that the lender can seize in the case of default of payment.
A personal secured loan allows home owner's to barrow against the value of their property to be able to make repairs, buy other necessities or wants such as a appliances, carpeting, a holiday, a new car, etc. The lender has much less of a risk of losing money and can also offer the borrower a much lower interest or APR rate. Many people who look for a secured personal loan use this money to consolidate all their other debts in exchange for one lower monthly payment.
With a personal secured loan you can choose a more varying time frame to repay the entire loan. This can range from 5 to 25 years in some cases or even in lump sums if you wish. The more you can pay on the secured personal loan the less time it will take you to repay it and the less interest you will have to pay. You may be able to borrow as little as £5,000 or up to £90,000 plus, depending on the value of the home and property.
Having the security on your personal loan will also make the lender more lenient with you when those little emergencies arise. . If for some reason you are having trouble keeping up with the repayments the lender will be much more willing to work with you. A lender of personal secured loans will not accept late or skipped payments though.
So make sure before you take out a personal secured loan you have thought out how much you will be able to afford each month and the exact amount of money you can afford to borrow. You will not want to be stuck with a foreclosure.
The foreclosure of a home due to default payments is a devastating thing to any family. Be sure to consider your finances and monthly bills prior to applying for a personal secured loan. Be realistic in what you make and spend per month to be absolutely positive that you will be able to make your loan payments on time and in full.
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About The Author
John Mussi is the founder of Direct Online Loans who help homeowners find the best available loans via the http://www.directonlineloans.co.uk website.
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