The events of the past 18 months have had a major impact on the UK’s reliance on secured loans. With unsecured loan availability having dried up for most of the country throughout the pandemic, customers with assets at their disposal had no choice but to turn to secured loans.
Consequently, the latest figures from the Secured Loans Index suggest that in March this year, total secured loan volumes were up 31% compared to the same month in 2020. Providing access to significant sums of money at competitive rates of interest, a secured loan can be used to fund almost any purchase, project or potential investment opportunity.
When it comes to getting the best deal on a secured loan, the process is not quite the same as applying for an unsecured loan.
How to Find a Good Secured Loan
What becomes clear after starting the search for a secured loan is that comparatively few brokers are available on the High Street. Unless you plan on taking out a conventional mortgage, you may find almost no specialist secured loans available from the usual big name banks.
This is where the UK’s extensive network of specialist lenders comes into play; which in many instances are accessible exclusively via broker introductions. Whatever you are looking for in a secured loan, it is essential to enlist independent broker support at the earliest possible stage.
This will enable you to quickly compare hundreds of deals from dozens of specialist lenders, while allowing your broker to negotiate an unbeatable deal on your behalf. As the services of independent brokers are provided at no cost to the client, they come highly recommended in all instances.
What Factors Affect the Affordability of a Secured Loan?
Enlisting the support of a skilled broker such as UK Property Finance is the number-one rule for getting a good deal, as they will do most of the legwork on your behalf.
Other than this, there are several important factors that can influence the affordability of a secured loan.
The influential of which are as follows:
- The size of the loan you are applying for and the length of the repayment period. The more you borrow and the later you repay your debt in full, the more you will pay by way of interest and associated borrowing costs.
- Your credit score and general financial position at the time, which in both instances are likely to be scrutinized by your chosen lender.
- The value of the property (or other assets) you provide as security for the loan. If the value of the asset(s) significantly exceeds that of the loan, interest rates can be brought down considerably.
Borrowing costs can also be influenced significantly by the type of secured loan taken out. A fast-access bridging loan repaid over the course of just a few months could carry a lower overall cost than a longer-term secured commercial loan, for example.
All of which will be explained by your broker, in order to help you find the best secured loan to suit your requirements and your budget.
The post How to Get the Best Possible Deal on a Secured Loan appeared first on SiteProNews.