Are Secured Loans a good alternative to remortgages?
Read on to find out more…
Sometimes we may need to raise capital from the value in our homes and as you will read below that capital could be used for all manner of expenditure requirements.
An increasingly popular choice among many is taking out a secured loan.
A secured loan can be a particularly attractive option if you are looking to raise capital from the value in your home but already enjoying the benefits of a low-interest rate arrangement with your current lender. And if this is the case and you want or need to raise capital, we may suggest you consider a secured or 2nd charge loan as an alternative to remortgaging.
For many people, secured loans can offer a quick and relatively easy alternative to re-mortgaging and even more so, if your current mortgage arrangement is still in its early stages. Moving to another arrangement or lender too soon may incur a substantial early redemption penalty (ERP) for a switch.
While it’s possible that secured loans may carry higher interest rate charges, they can be used to satisfy the needs of those looking to raise capital for practically any legal reason!
Some examples of where a secured loan may be used include; debt consolidation, solar panels, reducing an outstanding tax bill, making improvements to your property such as a new kitchen, extension or buying an asset and much more.
It should be noted that while you can search the market yourself for a secured loan, each time you apply, your credit rating could be put at risk with too many searches going against your name.
You can potentially avoid this risk by using Buckingham James because we will know which lender is most likely to approve your application based on your circumstances before you apply.
As with any mortgage-related financial transaction, seek our independent advice before making important and far-reaching decisions.