"A secured loan is a type of borrowing that's backed by an asset - most commonly your home. This is where the 'secured' part comes from. By using your property as security, lenders can offer larger loan amounts, with longer repayment terms than otherwise. The trade-off is risk. If you fail to keep up with repayments, the lender has the legal right to repossess the secured asset to recover their money."
"Secured loans are quite a popular option because they allow for property equity to be leveraged in order to access larger funding. As home ownership is still prevalent despite the cost-of-living crisis, the older generations are able to access this type of funding more easily. Secured loans require due diligence and should always be explored with the supervision of a qualified financial advisor. Some things you will discuss include:"
Secured loans are backed by an asset, most commonly a home. Using property as security enables lenders to offer larger loan amounts and longer repayment terms. Failure to keep up with repayments gives lenders legal rights to repossess the secured asset. Secured loans commonly fund debt consolidation, home improvements, major purchases, or business expansion. Property equity is often leveraged to access larger funding, making secured loans popular among homeowners, especially older generations with accumulated equity. Borrowers should assess asset value and available equity, compare interest rates and terms, and seek qualified financial advice. Clear repayment strategies and understanding of risks are essential.
Read at London Business News | Londonlovesbusiness.com
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