Monday, April 13, 2009

Consolidate your Debts into one Secured Loan Payment

By Jenny Austin

Millions of people all over the UK have debts by way of credit cards, loans, and overdraft facilities that they don't want, or are finding hard to maintain payments on. We all want to save money, and to pay the least possible interest on our debts, however not everyone knows how to do this.
Secured loans are one way to pay off all your debts, and have just one outgoing every month, one interest repayment, and to have everything in order, not to mention that it is usually the cheapest way to repay your debts. Homeowner loans are not used just to consolidate existing debts, but can also be used for other purposes such as a major purchase, or home improvements are the most common reasons, however most lenders will lend for almost any legal purpose, as long as the client fits in with their criteria.

Many lenders will let you take your loan over long periods of time so that your monthly payments become lower, and you are able to maintain their repayments comfortable manor. If you have a good credit rating, you may be able to take out an interest only loan, so that your monthly payments are even more affordable, however with an interest only secured loan you are not repaying any of the capital borrowed on the loan, only the interest, so it should only be used as a temporary fix.

With many people now borrowing in the way of secured loans, more and more lenders are moving into the market, and are competing on price, and their underwriting criteria. Now many lenders will lend up to 125% of the value of your property, however you must be able to pass their criteria which would be very strict for this type of homeowner loan, as the lender will not have enough equity to cover their money should the client default on the secured loan.

There are many lenders with a whole list of products to choose from, some more expensive than others. So when looking for a secured loan you needs to ensure that you are with the best lender on a product that is suitable for you. Without the correct knowledge of the homeowner loans market, it is very hard to know who, or when to go.

There are many secured loans brokers that are able to help when looking for secured homeowner loans. They will advise you on which company to use, and also the product, some homeowner loan brokers will even deal with the whole transaction for you up to completion of you secured loan. bridging finance is another way of borrowing.


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