June 23, 2008
Secured loans - part 2
All lenders will charge an interest rate against a secured loan. This interest rate is known as an Annual Percentage Rate ( APR ). So if you are using your property as security for a loan the amount of money you can borrow, the length of time you can borrow it for and the APR depends on your property’s equity status, your credit history , your reason for requesting the loan and your ability to repay the loan ( eg are you employed, self-employed or unemployed ). Depending on your personal circumstances you may find that you can borrow as much as 125% of your property’s value. The APR’s that lenders usually advertise should only be viewed as guidelines. The APR a lender charges will always depend on your personal circumstances.
You will usually find that secured loans are more accessible than personal loans. A lender prefers to issue this type of loan because your property will protect them against any circumstance where you are unable to keep up with repayments.