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Advantages Of Applying For A Secured Loan Among the popular types of loans available in the UK is secured loans, which has helped borrowers to raise extra capital that they need. On the other hand, there are some other ways on how you can get through this process. Remortgaging and unsecured loans are the most common alternative. If you are a homeowner and in need of cash, it is recommended that you consider a secured homeowner loan than any of the given alternatives. And if you are wondering why, better keep on reading. But before we go to secured loans, let’s take a quick look at what unsecured loans can offer to you. These types of loans are taken out from the lenders whereby no security for lenders to fall back on, which is what the name of the loan suggest. What is meant by this is that, in case that the borrower defaulted on repayments, the lender will not be able to get their money back through equity that someone has in their house. At first, this may look beneficial for the borrower but what the lenders do to deal with this issue is by pushing up the rates of interest hugely. To put it simply, there is a high chance that you are going to pay more on the interest than what the principle amount you have borrowed. The advantage of considering secured homeowner loans than unsecured loans is that, for those who have poor credit history, secured loans is often their last resort. There’s simply just no lender who is going to agree to lend cash to someone who has a bad credit history not unless they have some means of getting their money back in case that the worst thing has happened.
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Remortgaging a home is another way that people usually consider when getting money. Again, this is usually not a preferable option as getting secured homeowner loan. There are actually 2 reasons for this, first is that the remortgaging of home can take a long time, time which you don’t have when you are trying to get cash as soon as possible. The truth is, there are plenty of quick secured loans that are being offered these days by reputable and dependable companies, allowing you to get loans when you need it.
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Another reason why it is better to opt for a secured loan rather than remortgaging is of personal pride. If you’ve spent years after years of paying for the house, would you really like to hand part of it to the bank and start with the process again? Getting fast secured loan just indicates that you could still own the equity for the house a hundred percent, of course assuming that you paid off the money you borrowed.