June 22, 2008
Secured loans - part 1
A secured loan is a loan where the borrower is required to provide a lender with some type of security and this usually takes the form of a property. If you secure a loan against your own property whilst there is still an outstanding mortgage this is referred to as a second charge. However, if you secure a loan against a property where the mortgage has already been cleared ,this is commonly known as a first charge.
The amounts that you can borrow normally range from £3,000 to £50,000. As a condition of receiving a secured loan you will be expected to make monthly repayments over an agreed period of time . This time period can range from three to twenty five years. If you choose to settle your loan earlier than agreed you may find that you will be subject to a financial penalty. You should always check the terms and conditions that are associated with a secured loan prior to making any contractual commitment.