Secured_Or_Unsecured_Loan_

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					Secured Or Unsecured Loan?

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333

Summary:
What is the difference?

Secured loans are secured on your property. The lender will register a
second charge behind your mortgage lender on the land registry. That way
should the loan repayments not be made and repossession takes place the
secured lender will have second rights to reclaim their losses from the
sale of the property.

Unsecured loans are otherwise referred to as personal loans and have no
direct claim on your property.

Which one is the best?

You need...


Keywords:
secured,unsecured


Article Body:
What is the difference?

Secured loans are secured on your property. The lender will register a
second charge behind your mortgage lender on the land registry. That way
should the loan repayments not be made and repossession takes place the
secured lender will have second rights to reclaim their losses from the
sale of the property.

Unsecured loans are otherwise referred to as personal loans and have no
direct claim on your property.

Which one is the best?

You need to look at your situation and search the market for the best
loan for you. With an unsecured loan the lender will asses the risk of
lending you money purely on your credit history and personal
circumstances for example how long you have been in your job and if your
income can be proved. With a secured loan the equity in your property can
also be taken into account.

You may therefore have a poor credit rating but be able to offer the
equity in your property as security to lessen the risk for the lender of
them not being able to get their money back. Therefore in this situation
you would be more likely to be approved for a secured loan. As you can
see it all depends on your personal circumstances. You need to assess
your circumstances and speak to lenders about how you would stand in
being accepted.

It is important to search for the most suitable and competitive loan that
you and your circumstances will be accepted for. Don’t simply browse
headline rates advertised on the internet and in the press. Often the
rates advertised are only available for a small percentage of the
population who are extremely low risk. The best option is to speak to an
expert in this field. Tell them that you need to know the best rate and
product that is suitable and that you will be accepted for. This will
give you a realistic idea of what is out there for you.

				
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