Finance Articles From Shakespeare Finance
Secured loans - For big monetary requirements
Most of the loan products available in the credit market can be availed in both secured and unsecured form. Research shows that with benefits like no security against the loan amount; less paperwork and quick service in the absence of lengthy property evaluation procedures; and no immediate risks in the event of repeated defaults or non-repayment of the loan amount - unsecured loans are fast catching up in the UK loan market.
However, with drawbacks like limited amount (normally up to £25,000), high APR (as high as 41%), fixed payback method and non-negotiable loan terms and conditions, unsecured credit may turn out to be costly and rigid. Besides, its credit limitation makes it suitable for only small monetary requirements.
As secured loanscan only be obtained by offering an asset (like home) as security against the loan amount, the only people eligible for this loan type are homeowners and property owners. Other eligibility criteria's are UK residency, over 18 years of age, credit record, employment status, DTI ratio and the value of the pledged security.
Please note: Though secured loans offer maximum loan benefits, homeowners and property owners must give importance to the feasibility of getting into property related legalities and risking the property for a small amount - because for small and urgent monetary requirements opting for unsecured loansmay be more practical.
A security guarantees repayment, lenders are able to facilitate the borrowers with cost-effective benefits. Flexibility and quick attention are the most attractive features of secured credit. Other characteristics are high credit limit (normally up to £100,000), low APR (as low as 6.7%), multiple rate plans, different repayment methods and negotiable loan terms and conditions.
However, secured loans too have certain limitations - security compulsion leading to clientele limitation, slow approval procedure and repossession threat. Hence, availing credit assistance on the basis of requirement and overall feasibility is recommended.
Summary: Secured loans are more in demand in the UK loanmarket due to features like quick attention, high credit limit, low interest rates and negotiable payback terms and conditions.
However, with drawbacks like limited amount (normally up to £25,000), high APR (as high as 41%), fixed payback method and non-negotiable loan terms and conditions, unsecured credit may turn out to be costly and rigid. Besides, its credit limitation makes it suitable for only small monetary requirements.
As secured loanscan only be obtained by offering an asset (like home) as security against the loan amount, the only people eligible for this loan type are homeowners and property owners. Other eligibility criteria's are UK residency, over 18 years of age, credit record, employment status, DTI ratio and the value of the pledged security.
Please note: Though secured loans offer maximum loan benefits, homeowners and property owners must give importance to the feasibility of getting into property related legalities and risking the property for a small amount - because for small and urgent monetary requirements opting for unsecured loansmay be more practical.
A security guarantees repayment, lenders are able to facilitate the borrowers with cost-effective benefits. Flexibility and quick attention are the most attractive features of secured credit. Other characteristics are high credit limit (normally up to £100,000), low APR (as low as 6.7%), multiple rate plans, different repayment methods and negotiable loan terms and conditions.
However, secured loans too have certain limitations - security compulsion leading to clientele limitation, slow approval procedure and repossession threat. Hence, availing credit assistance on the basis of requirement and overall feasibility is recommended.
Summary: Secured loans are more in demand in the UK loanmarket due to features like quick attention, high credit limit, low interest rates and negotiable payback terms and conditions.
Shakespeare Finance is registered as a Limited Company in England & Wales with Company No. 04967271. Registered Office: Parade House 135, The Parade High Street Watford, Hertfordshire WD17 1NS United Kingdom,Email: info@shakespearefinance.co.uk
Shakespeare Finance Ltd. is authorised and regulated by the Financial Services Authority (FSA No. 441248). The loan products may not be regulated by FSA. The Company is duly registered with: the Data Protection Act, 1998 Reg. No: Z8587566, the Consumer Credit Act, 1974 Licence No. 547864 and FISA Reg. No. 28651810. Copyright © 2004-2008 Shakespeare Finance Ltd. All rights reserved.
