Carmine

This question arose when I spoke to an old friend from University who is now in the secured or homeowner lead generation business, he was telling me that in the last year he had seen a massive rise in secured loan applications. He was of the view that the people who were taking secured loans over re-mortgages were less financially sophisticated than the people who were going for a re-mortgage.

My first impression was that this might be the case, as interest rates having been rising for a while and anybody who was at a stage of a variable rate mortgage would be feeling the pinch, it would be an ideal time for these people to consider re-mortgaging. I thought to myself is there a general fear of change amongst people or perhaps the hassle of going through the re-mortgage process is too much of a burden. Then I started thinking maybe secured or homeowner loans might have their own advantages.

Clearly getting a secured loan is much faster way of raising finance on your property than a re-mortgage. A secured loan application can be completed within 2 weeks, you normally dont have to pay any fees to solicitors, surveyors etc. The interest rates are quite competitive and a secured loan is easier to get than a re-mortgage, especially if your income is not exactly reaching the multiples you need to raise the extra finance from the equity in your property through a re-mortgage. The desire for credit in UK has been at a boom in the last few years, which is one of the reasons we have seen the interest rates rise every few months. It could be the case that the people who are choosing secured loans are not that financially incapable, especially if they are looking at debt consolidation or even thinking of buying a new car on finance, as car finance companies and some credit cards can charge a very high APR.

More to follow as I learn more. http://www.personal-secured-loan.co.uk

Thoughts arising from starting work for a loans company dealing with secured loans for people with all types of credit http://www.personal-secured-loan.co.uk