Is an attitude change to secured loans overdue?

 Secured loans are not the most popular form of finance raising currently on the market. However, many lenders and brokers are beginning to suggest that its high time we all re-evaluated how we view and approach secured loans.

Why reconsider secured loans?

Typically secured against a property or asset, secured loans provide a convenient way for consumers (particularly those with adverse credit ratings) to source finance when they need it – at much more affordable rates than unsecured alternative finance options.

The security provided by a consumers' asset allows lenders to offer lower rates of interest, more flexible terms and longer loan periods, yet many people are still cautious about using this type of finance – and many write it off altogether.

What's changed?

This negative view of secured loans stems from a few different sources. Historic problems with this type of product in the past have led some to be wary, yet new regulation has been in place and has been effective for a number of years – a change which should make many feel more secure about secured loans.

Potential savings

Misconceptions about the cost of secured loans are also prevalent, with many people (both consumers and brokers) often believing that the cost of a secured loan is much higher than the reality. Consumers would be well-placed to explore this potentially cost-efficient option before settling on their chosen form of finance.

Knowledge is power

Unfamiliarity with the product is one final factor which makes this a finance product ripe for reconsideration. This may not be the most-used finance option on the market, but lack of familiarity does not mean lack of suitability. Taking a closer look and learning about the different options may prove to be financially savvy for many borrowers.

From £1,000 to £250,000, our secured loans are available with very flexible repayment terms and are subject to careful regulation. Talk to us to learn more and to explore secured loans today.