0800 0728 302
or 0800 0305 093
Home
Faq/Help
About Us
Loan Calculator
Quote & Search
Contact Us
Advice
Credit Cards
Loan Jargon
Privacy
Loan Links
25 July 2008
Rates as low as 6.7%

Home Loan Guide

A secured loan is a loan which requires the borrower to submit to the lender some form of collateral. If the loan isn't paid and the borrower defaults then the lender can take the collateral as payment. Normally, the collateral is a property and that's why this is sometimes referred to as a home loan or homeowner loan.

A mortgage is a secured loan and that is the 'first charge' against the property. If another secured loan is taken out it is know as a 'second charge' and is the second claim on the property in the event of the borrower not paying.

A secured loan can be taken out for any number of reasons: home improvements, buy-to-let, wedding, setting up a business, clearing off more expensive debts. The loan is repaid in payments made each month for a period of time that is decided at the time the loan is taken out. This can be 5 to 25 years. The longer the loan term the lower the monthly repayments.

Lenders charge interest on the loan which is calculated as the Annual Percentage Rate or APR. This takes into account the costs of setting up the loan, how often the interest is charged, any discount rates and is a measure of the average rate of interest over the duration of the loan.

All lenders must, by law, inform the borrower of the APR, and it's calculated in a uniform way.

Each borrower's circumstance is examined, and they are offered an individual interest rate from each lender. The best way for you to be offered a low rate of interest are:

Have a good credit history
Pay your existing debts on time
Reduce existing financial commitments
Have a high collateral property value compared to the amount you wish to borrow.

Different lenders specialize in different parts of the secured loan market. It's a very competitive business. So it's very important to get several quotes so you find the lender who offers the best deal for people in your individual circumstances.

Searching online is the most convenient and comprehensive way to cover all the market. Whichever lender you select then you can always improve the offer by 2% by using iSecured Loans as your loan broker. You get an extra 2% cashback rebate by using our service, as well as the use the same lender who's deal is the best for you.

The loan can be repaid early to reduce the total amount of interest, but it's an absolute minimum 6 month commitment.

You may have heard, in the media, about the current 'credit crunch' in the financial world. Across many markets lenders are tightening their lending criteria. In view of this, we believe it's wise to take advantage of some of the great deals that are currently available, as they may not be available later in the year.