Tuesday, December 23rd, 2014
Consumer demand for secured loan lending in the UK has grown month-on-month for the last three years representing in some instances, almost a 100% increase over that same period.
In many cases, the reduced appetite of some major banks and mortgage lenders to lend extra money to existing customers has been counterbalanced by the comparatively competitive interest rates and the flexibility of lending criteria being offered by some secured loan lenders which means that they, in turn, can assist more prospective borrowers.
Another less obvious contributory factor would appear to be the ever increasing number of people who, whilst seeking to raise finance, are looking to keep their current mortgage deal either because they are tied into their current rate or perhaps because they still wish to retain their current very low mortgage rate.
Secured loans can generally be used for any purpose, the most popular reasons being credit consolidation (something which is not always acceptable to some mortgage companies), home improvements and car purchase. Credit consolidation allows the borrower to repay existing credit at the same time as raising extra money for another purpose which can often result in reduced monthly payments, although of course, other important factors need to be taken into consideration.
Additionally, for those consumers who are self employed, or have an adverse credit history or maybe even recently changed circumstances, a Secured Loan could be represent a really useful solution.
Whilst every case is looked at on its own merits, what security is likely to be required?
Typically, these loans will require you to use either your main residence or any buy to let investment property you may own as security. If you do own multiple properties it is possible you may be able to arrange a loan on each of them, subject to the loan repayments being affordable.
Does this sound like something that might be right for you?
For more information on secured loans, call Birmingham’s Caboodle Finance today on 0121 308 9114 or click HERE to contact us by email.