The secured loans market is continuing to contract with just three lenders left in the market. Nemo Personal Loans, Ocean Money and Secure Trust Bank are the only remaining secured loan lenders after First National became the fourteenth lender to axe its secured loan products in just under two years.
Falling property prices has made the secured loan market a potential hazard for lenders. In addition, those seeking a secured personal loan typically have little equity and the property and bad credit histories . Add in the fact that a repossessed home is likely to be sold below market value anyway, the deduction of the first charge mortgage and legal fees leaves a secured loan lender with a significantly lower sum than the amount they are owed.
Ocean Money is currently offering the most generous interest rates on secured loans, with sums between £40,000 and £100,000 , repayable over a period ranging from 5 to 30 years, accompanied by a fixed interest rate of 8.7 per cent. Not all borrowers will be eligible for such an interest rate, however, with rates dependent on a number of factors, including the amount one wishes to borrow and the relative value of your home and your equity percentage.






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