How is this different from a regular loan?
Also known as personal loans. These type of loans will usually be available to you if you have a fair to good credit score. The reason for this is that the stronger your credit score, the more reliable you will look to providers/lenders, with less risk of you being unable to pay back the loan. With an unsecured loan, you are not required to offer an asset as security for the loan.
Secured loans are supported by an asset that you’ll use as security for the loan – this means if you are finding difficulty in repaying the loan, the lender may repossess your valuable asset (usually a property). Secured loans are often used to borrow larger sums of money than unsecured loans because the lender will have the security of knowing they can reclaim the loan’s value if you fail to repay.
Why take out a secured loan?
Some common scenarios of secured loans being used are: covering large expenditures (e.g. home improvements), weddings, school fees, debt consolidation, fixed rate mortgages, buying a car, etc.
We do have lenders that will offer a secured loan to clients, but the rates may be higher when compared to mortgage rates. For more information please fill out the form below and we will be in touch with you.