A Secured Loan Broker Can Arrange Your Secured Loan For You

A secured loan as the name clearly states is only available to homeowners as the secured loan is secured on the equity of your property. If you are a homeowner a secured loan is a good way for you to obtain the funds you need, as secured loans have low rates of intest. Secured loan interest rates at present have interest rates starting at just over 8% APR for homeowners with a good credit rating and sufficient equity.

Equity is the difference between the outstanding balance of your mortgage and the value of your property. This means that if you have a property worth £200,000, and your mortgage balance is £90,000 your equity would be £110,000. There are no longer any 90%, 95% or 100% equity plans available now let alone the 125% plan. All this stopped when the recession started.

Nowadays the secured loan lenders only lend to a maximum LTV of 70% for self employed secured loan borrowera, and 80% for employed secured loan applicants.This means that based on the above example a self employed homeowner could borrow up to a maximum of £50,000 and an employed homeowner could in theory obtain a secured loan of up to £70,000. Some secured loan lenders no longer grant secured loans of as much as £70,000 although some still lend up to a maximum secured loan value of £100,000.

If your credit rating is poor it is still possible to obtain a bad credit loan but the maximum secured loan value is restricted to £25,000, and the LTV is likewise restricted to 60%-70% for light adverse and 50% if your credit rating is very poor.

I think that by now you must realize that there are many factors that affect your secured loan. Such things as whether you are self employed or not. What your credit rating is can affect the interest rate given. The available equity also influences what secured loan is available to you.

With such confusing choices the best way is to engage the help of a secured loan broker who can explain the secured loan process to you and give you a free no obligation quotation. If you are happy with the quotation and are certain that you can comfortably afford the repayments the secured loan broker can virtually do everyting for you.He will also be certain in his own mind that the secured loan repayments can be easily met.The general rule of thumb is that a secured loan lender takes 40% of gross income which must cover the mortgage payment, the secured loan payment, and any unconsolidated debt on loans, etc. Gross income is the income you receive before the deduction of tax and national insurance.

As secured loans are probably most commonly used as debt consolidation loans, repaying the secured loan will not normally present a problem as the debt consolidation loan saves a fortune every month by rolling all your debts on credit cards, etc. into one much lower interest monthly payment. Your secured loan broker can work out how much you will save every month after he carries out a credit check with your permission. The credit check will show a list of all your loans, credit cards, etc.which will enable the secured loan broker to work out how much you need to borrow for debt consolidation and how much it is costing every month.It is amazing how many people do not total up what they are paying out monthly and this is also where the secured loan broker comes in very handy.