A Secured Loan May Be The Only Option.
As more and more unsecured loan lenders are refusing to grant unsecured loans, more people will have to opt for a secured loan.Moneyfacts.co.uk state that over the last two years there has been a 37% decrease in unsecured loan lenders willing to grant unsecured loans.
People are really struggling at present to keep up with all their mortgage, credit card,and loan repayments. When you are struggling financially and finding it almost impossible to meet every payment you have every month, you will obviously make the payment of all your secured borrowings your proiority. This means that you pay your mortgage and any other secured borrowings first , and unsecured credit cards and unsecured loans will take second place to your secured loans. This is a reason why unsecured lenders are unwilling to lend as they are well aware of people’s priority.
There is as such a strong possibility in this uncertain times that the risk of defauting on unsecured loans is too high a risk to take. Blackhorse are still arranging unsecured loans, but the interest rate is high, with the starting interest rate of 19.50% APR. Even with these high interest rate the percentage of applicants declined is extremely high. The writer of this release has been in the secured loan industry for twenty five years, and is astonished at the quality of applicants refused turned down for an unsecured loan with Backhorse.
The Royal Bank Of Scotland has an unsecured loan product with an APR of about 7% which is very good However if you want to borrow more than about £7,000-£8,000, an applicant must earn £60,000 minimum per annum if it is a single application, and £80,000 minimum income for a joint application. Until about a fortnight ago a few selected secured brokers in the UK had access to this RBS unsecured loan, but as a sign of the times, this access has seized, and there are now no secured loan brokers with access to this RBS product.
The Alliance and Leicester offer an unsecured loan to direct customers and they advertise a rate of 7.5% APR. However the underwring is of necessity very strict, and apart from a high percentage of applicants being declined, over two thirds of applicants granted a loan repay the loan at a much higher interest rate than that advertised.
Therefore if you are a homeowner a secured loan is the way forward,and can be an excellent way of arranging debt consolidation if you find yourself struggling under too many debts. The APR for a secured loan at present starts at about 8% , and as such can pay off all your unsecured borrowings on credit cards, personal loans, home improvement loans, etc. The saving should be enormous.
If you have £20,000 or more on unsecured borrowings you should easily be able to half your outgoings. If you are thinking along these lines, the best first step is to approach a specialist secured loan broker who will deal with every secured loan lender to obtain the very best interest rate for your circumstace, and he will also work out how much you require to borrow, give you a quotation, and in fact will arrange everything for you from start to finish.
- Contact Information
- Liz Moir
- Champion Finance
- Contact via E-mail
This news content may be integrated into any legitimate news gathering and publishing effort. Linking is permitted.
News Release Distribution and Press Release Distribution Services Provided by WebWire.