Secured Loans

Best Secured Loan

Getting the best secured loan or the best non recourse secured loan deal possible is going to be top of your list if you are on the lookout for an asset backed credit product in the UK. For many people in the UK, credit is a central part of the way we manage our finances. Businesses run on credit do many people's personal budgets. Credit cards, personal loans, home loans and car loans are all common place and so long as you can meet the repayments there is nothing to advice against taking out a loan. The traditional wisdom you will hear, however, regarding how to secure your loans is that the best option is always to take an unsecured as oppose to a secured product.

The reason for this is that an unsecured loan only puts you credit on the line, whereas a secured product means putting up an item of property as security or collateral. The view is that if you do default, the former option will only result in a bad credit score and some penalty fees while the latter will see you lose your property so, is therefore, a greater risk. This does not take into account some key elements of the best secured loan products which should be factored in to your decision.

Advantages of Asset Backed Lending

The best reason for taking out a secured loan as opposed to an unsecured kind is that it comes with much better conditions. If you need a large amount of capital quickly an unsecured product is highly unlikely to deliver, unless you have a pretty incredible credit rating. Chances are, even if you do get a high unsecured product, the turnaround and interest rates on the payment will be far from the best. As there is no collateral on the agreement the lender wants to get paid as soon as possible and with as much interest to protect their investment.

This is not the case with the best secured loan products on the market. As they are protected with an item of your property the lender will be much more relaxed about reclaiming the forwarded capital, giving you a longer term of repayment. Plus, as you have put up a valuable item for the security on the loan, the lender will be much more willing to offer you a large advanced sum of capital. So, while you might assume the unsecured product is less of a risk, it often turns out that the best secured deal is much safer.

The long term that is attached to the conditions of your best secured loan means that you have much longer to budget and plan for the payment you have to make. This gives you lots of leeway in terms of what you can use the money for and if you are investing it, it gives you a much longer length of time to wait for it to reap a profit. This means that the best secured loan products can often be a much safer purchase than their unsecured equivalent.

Deciding on the Asset

The asset you put up as collateral on the loan is all-important as it will influence all elements of the agreement. The more valuable the item that has secured the credit the more you will be forwarded and the better the terms of repayment are likely to be. This does not mean, however, that you should immediately commit to putting your home up as the security, simply because it is the most expensive thing you own. Work out what your requirements are and then consider what collateral will get the best secured loan with those things in mind.

Defaulting

The big risk, even with the best secured loan is that you will default through missed payments and your property will be taken away. When this happens it can be extremely stressful for all concerned so it is important to know the best way to deal with defaulting. The first thing to keep in mind is that secured loan providers would generally speaking; prefer not to seize a property. Therefore they will be open to negotiations if you feel you can work out an alternate but still fair term for repayment. Generally speaking, if you do go into arrears on an asset backed credit product you will be given three to four months to repairs them before your property is seized.

The best secured loan product on the market can be of great help to you in getting the right amount of capital at an affordable premium and payment term. Though it can difficult to know which is best - asset backed or non-asset backed - there is no doubting that the level of capital you get and the interest rates applied on an asset backed product are much better. Look into the best secured loan products today.