Secured Loans require the loan to be guaranteed against a property. Simply put, if you fail to pay back the loan the lender can re-possess your house to recover any outstanding debt. Because the risk to the lender is reduced, so are the interest rates. Conversely, the stakes are higher for the applicant if things go wrong .
Amongst other factors, the amount you can borrow through a secured loan will depend on the amount of equity built up in the property. If you are tempted to spread the loan over the term of the mortgage, be aware this is likely to more than erode any savings arising from the reduced rate as the interest build up over a longer period.
If you need more information to decide which loan is the best for you, then check out
TheRateTart Guide to Loans.
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