Secured Loans

Anyone wishing to raise additional capital who has sufficient equity in their property could consider a re-mortgage, however this may not be possible if penalties apply to the mortgage and taking out a secured loan could prove a viable alternative as the available equity in the property can be used to guarantee the loan.

As with any loan secured on a property, consideration should be given to what would happen if the repayments were not met.  However, secured loans do have a number of distinct benefits over other types of borrowing.  One of these is that they usually offer attractive interest rates when compared to unsecured loans.
 
Secured loans also come with all sorts of flexible repayment terms. These may include ‘payment holidays' whereby you can halt repayments for an agreed period of time in order to divert capital elsewhere (say to help with the costs of a wedding or newborn child) and favourable redemption charges – which is an important consideration if you may want to pay the loan back early.

Secured loans are typically spread over a much greater timeframe (up to 25-30 years) than unsecured loans, and you can borrow larger amounts.