Can Anyone Get a Cheap Secured Loan in the UK?

While secured loans are a good source of cheap credit they are by no means the most easily available financial product in the UK. By their nature they are only available to homeowners or people who can offer a valuable asset as security for the loan.

If you are already a homeowner and you set about looking for a secured loan you may also find that many cheap loans in the UK are only available if you have an existing mortgage with a particular lender. While some lenders will offer a secured loan to any homeowner, many insist that you switch your mortgage to them if you wish to avail of their secured loans products. To do this you would have to remortgage, which might not necessarily be a bad thing.

A remortgage can offer many advantages. Most UK consumers find that they can save money on monthly repayments by remortgaging while others use it to release equity from the value of their homes.

It is possible to save money on your mortgage and get a cheap secured loan by switching lender. However, be sure to do the maths and shop around for the best deal.

You may also be limited in your choice of loan products if you are self employed or if you have a poor credit rating. There are still some cheap secured loans available if you are in this situation but lenders have tightened their criteria because of the recent sub-prime mortgage crisis in the United States.

If you are self employed or have a poor credit rating you may want to seek the advice of a broker who specialises in self cert and bad credit loans. A good broker that deals with a number of financial institutions should be able to assess your situation and find the right lender for you. However, these kinds of secured loans often attract higher interest rates than standard ones. While secured loans may not be an option if you do not have a home or a valuable asset to offer as collateral, they should be able to find a good product for you if you do. Because they know they can recoup their losses if you default, they will be much more willing to do business. Because of this, a secured loan may not be for everyone.

If you are uneasy with the added pressure of having your home secured against a loan perhaps you should consider alternative forms of credit. When looking for any financial product it is always a good idea to shop around. Approach a number of lenders to see who offers you the most favourable interest rate. Also examine the terms and conditions of the loan closely.