As their name secured clearly states, secured loans need to be guaranteed by some form of collateral
There are many different kinds of secured loans and this points to the fact that many different kinds of security are required.. In spite of the fact that many people appear not to realise it, even car loans are secured. They are secured on the asset of the car itself. Therefore this means that if you have a car loan and fall behind with the payments, that is you default on the repayments, the lender can repossess the vehicle.
Loans used to buy boats,, motor homes, caravans and so on, etc. are all forms of secured loans, and again if you default seriously on the loan repayments the lender can repossess the boat, caravan, etc. etc.
Yet another type of secured loan is the commercial one.. These secured loan must be secured against business premises. There are all different kinds of commercial property that are suitable security for a loan. One of these is for example the residential care home where the elderly,no longer capable of looking after themselves, go to receive the best of care.
Whenever a garage owner wants to add to his stock of cars thinking that it will help to improve his turn, arranging a secured loan for this reason, could prove to be an excellent idea and the bricks and mortar of the garage premises would form the security needed.
Commercial secured loans can be secured against hotels, restaurants, etc. By using a secured loan the business man can add an extension to his premises, again adding to it’s profitability by making the hotel, restaurant nicer etc. or can extensively improve it in other ways.
If you own an independent supermarket you can even take out a secured loan by using the shop as security, and buy more stock to increase the profits made by the shop
Although these are all examples of secured loans, when most people think about secured loans, they think about the homeowner loan which used to be called a second mortgage.A secured loan is secured on the equity of a property which can be a main residence or sometimes even a holiday home.
Secured loans are a good cheap method for homeowners to borrow money for almost any reason whether it is to buy a car, carry out home improvements, holidays, weddings, etc. etc. They have low interest rates, because the loan provider has the confidence that the borrower intends to make all repayments on time.
There are a lot of different types of secured loans, and for those who own a property, they make good ways of obtaining a cheap loan.
categories: secured loans,homeowner loans,mortgages,remortgages,refinancing,property