A secured loan is similar to a second mortgage which runs behind your primary mortgage on the property that you own. In many instances the majority of home owners would remortgage their property to generate additional capital, however if your main mortgage is on a low rate of interest or you are tied in to your current deal then a secured loan may be a suitable option for you.
If you are thinking about a secured loan it always pays to shop around – the majority of providers add arrangement fees which relate the costs of the loan setup, valuation and legal fees. The positive factor about secured loans is that if you would like to redeem them early then there is a maximum of one month’s interest to pay as a penalty.
Please remember – as this is a loan secured on your property, your home could be at risk if you were not to keep up the loan payments. To discuss your best options please contact a member of our team today.