Short Term Secured Loans

Secure Money Considering the repayment conditions, it can be stated that the secured loan is a better choice than the unsecured loan. Having the guarantee of a property allows the borrower to lower the interest rates, so the APR (Annual Percentage Rate) is also less. People in the UK show high interest on mortgage deals. Among these, home equity loans and loans against property are preferred.

Recent studies have shown that approximately 45% of the persons who get a secured loan chose the short-term ones. The term mostly preferred is 5 years. The main advantage is that by taking the secured loan a borrower can get the lowest interest rates and by choosing a shorter repayment period, the borrower can take advantage of these low rates from several lenders. Rates which are considered the best are somewhere between 5.49% APR and 5.79% APR. There are different factors that influence the increase or decrease of the interest rate, such as property value and the borrower’s credit rating.

During these times of instability on the British financial market, personal loan rates fluctuate a lot. Therefore, the final real cost, with all the fees and charges included, is what every borrower has in mind when applying for a loan. Among the types of rates offered by lenders, the variable rate is the best known. It is calculated in relation to the base rate established by the Bank of England. The fixed rate is a common option, too.

The secured loans on short term have been included in the offers of some high profile lenders for the past recent years. They periodically make attractive offers, besides the competitive rates, including even discounts on the loan cover policy.

Each month you pay part of the interest and of the principal. Repaying on regular basis, you can even reach a principal outstanding balance of 0 value, so you are debt free.

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