What is a Secured Loan? - By: Ryan Marshall

A secured loan is a loan which is secured on your property, you can usually borrow upto £100,000 or more dependant upon the equity available in your property. They are usually easier to obtain because you have the security of your property as collateral. This makes the loan, less of a risk to the lender and usually you can get a better rate with secured loan lending than an unsecured loan, especially if your profile is adverse in any way.There are a variety of comparison sites which can compare secured loan.
The process for a secured loan does take longer, most companies, in the right circumstances, can complete a secured loan Approval within 10-15 working days. This is dependant upon several factors. Other factors include your current first charge / mortgage company, if they have a restriction on your property then consent for second charge needs to be obtained, this can take anywhere from 2-8 working days dependant upon the lender. Essentially what most people are looking for in the current climate is a flexible secured loan.

With the problems within the finance markets,this has reduced the availability of secured loans. A secured loan is a loan which is a second charge on the security/property and the mortgage typically being the first charge.

The financial problems within the global markets have meant that lenders are unable to buy "money" at wholesale prices. Money is sold the same as many other products, essentially some banks and intituitions buy their money at wholesale prices and sell at their own prices, much the same as other types of products sold in supermarkets. The problems at present are being caused because their is not so much money within the wholesale market and what there is is more expensive than it used to be.

The Secured Loan or Home Loan market has suffered more than most. The lack of available funding has led to many lenders closing their doors to the secured loan market.The problems with this is that even though many people may have equity within their property, they may be unable to access it, through a secured loan.This may mean many more people opting to use a remortgage to access the equity, and this could come with a sting in the tail, since there may be redemption penalties and costs involved that could have been avoided with a secured loan.

About the Author

Ryan Marshall is a freelance writer and writes for the following websites www.chrysalisfinance.co.uk, www.e-loans4u.co.uk, www.overseaszone.com.

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