A secured loan is a kind of finance borrowed in addition to a pre-existing mortgage. Secured loans are only available to homeowners and work in a similar way as that of a mortgage, with the advance placed against the value of the property. Although there are some striking similarities between a secured loan and a mortgage, the two products are completely different. A secured loan is a different product to a further credit on an existing mortgage that a homeowner may obtain.
In the same manner as most products of banks and mortgage lenders are defined, Secured Loans fall into three major categories; prime, sub-prime, and non-status or non-conforming. A typical prime applicant for a secured loan would be carrying a clean credit history and high levels of equity in his property. Applicants suffering from bad credit history caused by mortgage arrears, defaults on other finance or CCJs would fall into the sub-prime category. Non-status loan products are more suitable for self-employed people wishing to self-certify their income, or those applying for a loan against what a lender would describe as a non-standard construction type of property.
There are two main purposes for opting for such a loan. One is to have favorable terms and conditions, such as lower interest rates or a longer repayment schedule. The other is to get a finance, when circumstances demand that a credit institution would not extend a credit line, otherwise. This type of debt structure is more feasible to bankers and creditors, because it lowers the risk that the loan money and never see it again.
In today's scenario, there are numerous free Secured Personal Loans price comparison websites. One needs to enter their loan, credit and home details and they'll publish the cheapest lenders and deals. A trusted comparison site can take in a lot of the groundwork for searching good loan options for you. A database of trusted finance firms made available to help you find the best deals for your circumstances.
In the same manner as most products of banks and mortgage lenders are defined, Secured Loans fall into three major categories; prime, sub-prime, and non-status or non-conforming. A typical prime applicant for a secured loan would be carrying a clean credit history and high levels of equity in his property. Applicants suffering from bad credit history caused by mortgage arrears, defaults on other finance or CCJs would fall into the sub-prime category. Non-status loan products are more suitable for self-employed people wishing to self-certify their income, or those applying for a loan against what a lender would describe as a non-standard construction type of property.
There are two main purposes for opting for such a loan. One is to have favorable terms and conditions, such as lower interest rates or a longer repayment schedule. The other is to get a finance, when circumstances demand that a credit institution would not extend a credit line, otherwise. This type of debt structure is more feasible to bankers and creditors, because it lowers the risk that the loan money and never see it again.
In today's scenario, there are numerous free Secured Personal Loans price comparison websites. One needs to enter their loan, credit and home details and they'll publish the cheapest lenders and deals. A trusted comparison site can take in a lot of the groundwork for searching good loan options for you. A database of trusted finance firms made available to help you find the best deals for your circumstances.
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