Secured Loans Work Out Cheaper-noiseware

Loans According to MoneyExpert.. borrowers can cut their monthly repayments on loans if they choose products which are secured against their home, as opposed to just borrowing on unsecured terms. According to the financial expert the average lender would charge 8.44% on an unsecured loan of 15,000. However a secured loan .pared positively with a rate of 5.9%, 2.5% lower than unsecured borrowing. Chief executive of MoneyExpert.., Sean Gardner, thinks that these findings could have a major affect on the way the British public view secured lending. Amid the credit crunch it seems banks and lenders are more willing to offer .petitive deals to people who offer them a security that they will get their money back, one way or another. Gardner said: "Historically secured loans were seen as something of a product of last resort. But these days they are far more attractive to homeowners who are looking for a .petitive rate of interest. "The best secured loan deals are actually cheaper than the average unsecured loan." The increasingly favourable terms given by providers to people who want secured loans has seen an increase of 85% in applications for secured loans on MoneyExperts website. This is promising news for lenders, advisers and secured loan leads .panies. These results from MoneyExpert .e while the trend in the market seems to be shifting away from unsecured loans and towards secured ones, which offer more promising interest rates and keeps costs to a minimum. Gardner went on to say: "It’s fair to say that the majority of secured loan customers are those who cannot get an unsecured loan. Many are looking to consolidate debts and perhaps they have a poor credit record. But that is not to say that a secured loan is inherently bad – home loans can be a lifeline for the applicant, but they should be taken on with a degree of caution. "One thing to be cautious of is lender or broker fees. Some of the headline interest rates may not include fees which would normally not apply on an unsecured loan. That said, even with a fee the lower rates available on homeowner loans make them worthy of serious consideration." Even the best unsecured loan deals available on the market are only slightly better than the leading secured loans. The cheapest unsecured loan available on the market at the moment is 5.54%, this is only for a loan of 1,000 though and can be found through Zopa. Broker SLS thinks that lenders should be taking the opportunities the current popularity of the secured loan market is offering them. It is low risk lending, SLS is calling for more lenders to view the secured loans market as a long-term business possibility, the .pany also thinks that sustainable models should be developed and .panies should enlist the help of intermediaries and preferred partners. SLSs managing director, David Burrows, said: It appears to me that lending in the UK seems to go from one extreme to the other. Yesterday we were able to cater for virtually anybody, but today we can cater for virtually nobody. Surely we must be able to find a happy medium? Burrows thinks the way to a better collaboration, is for better relationships to be f.ed between brokers and lenders. It seems that the credit crunch has presented opportunities for both consumers and lenders to get a better deal. For interest rates and keeping it as cheap as possible it is advisable for customers to take our secured loans rather than unsecured borrowing. It is advisable to lenders to grab the opportunities offered to them. About the Author: 相关的主题文章: