What are fast UK secured loans?
Fast UK secured loans are loans offered to customers in the UK, which are secured against equity in the home of that customer. They can also be secured against another asset owned by the customer, with cars, paintings, jewellery and artwork used in the past. So long as the fast UK secured loans provider accepts the asset, it can be used.
The majority of fast UK secured loans are secured against equity in the home however, and customers should be aware that should they fail to keep up repayments on their loan, their home could potentially be repossessed and sold so the lender can retrieve the money they lent you.
Fast UK secured loans are popular in the UK as they tend to offer lower interest rates, and higher loans than personal loans, or unsecured loans. Whilst personal loans and unsecured loans are not secured against a customer’s home, many customers never have any problems repaying their loans, and simply want the cheapest deal, whatever the risk.
How do fast UK secured loans work?
Fast UK secured loans are very simple to set up. A customer just needs to know how much equity they have in their home, as generally this is the upper limit of their borrowing, with their credit rating and banks lending limits also affecting the borrowing limit.
To work out how much equity you have in your home, you need to know the outstanding mortgage balance, if you have a mortgage, and the value of your home. Simple take the balance of your mortgage away from the value of your home, and the remaining figure is the amount of equity you have in your home.
If you are left with a negative figure, you are said to be in negative equity, and you may not be able to use fast UK secured loans to borrow money against your home.
Why do people take out fast UK secured loans?
There are many reasons to take out fast UK secured loans. Some customers may use them to consolidate more expensive debt, with credit and store card debt usually costing around three times more on an annual basis than a secured loan.
Others use the money to make improvements to their home, including extensions, conservatories and garage and loft conversions.
These extensions often add value to the home along the way.