Do you want to cash the equity in your home? It’s very easy. You have to pledge your home to the lender and a big loan might be awaiting you. Every home has certain market value and if we deduct the unpaid mortgage balance, if any, we get the value of equity. Most of the lenders provide you loan that can go up to 75 to 125 per cent of the equity.
When you take out loans by pledging your home, the lenders offer you a low rate of interest. These loans are helpful in situations where you need to repay your high interest debts. You can take low rate secured loans to repay your debts that involve high interest rates. In this way, you can save some money also.
Secured loans have many dimensions. You can use these loans for a number of purposes; the rate of interest is second-lowest after mortgages; loan amount can go up to £250,000. All these features make secured loans a preferable choice of many homeowners.
Flexibility in repayment
Secured loans give you a lot of flexibility in repayment. Some of the features helping you in repayment are: deferred payments, payment holidays, accelerated repayments, etc. Regarding the payment of interest, you can choose between variable rate and fixed rate method. In case of fixed rate method, the rate of interest doesn’t change for a fixed period irrespective of the prevailing base rate. In variable rate method, the interest that you have to pay is directly linked with the existing base rate of interest.
Big loan amount
Secured loans offer you big loan amount and you can use it to accomplish big projects like home improvement, buying an expensive sports car, etc. You should make a priority list of the tasks that you want to accomplish together with an estimated requirement of money involved. This will give you an idea of how much amount you need to borrow. As far as possible, you should avoid borrowing more than required.
Published: 9/28/2007
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