Alliance & Leicester has launched a new secured personal loan that is designed to bridge the gap between its unsecured personal loan offerings and its mortgage range.
The homeowner loan has an annual percentage rate of 7.9 per cent. Borrowers can take out this loan over a period of between five and 25 years.
Borrowers can take out a loan for a larger amount – anything between £5,000 and £50,000 – with this secured loan than with an unsecured personal loan.
The process of application is quicker and easier than remortgaging, the lender claims, adding that there is more flexibility with the secured loan for early repayment of the loan.
Alliance & Leicester introduced the secured homeowner loan "to give people another borrowing option from a name they know and a brand they can trust", says the lender's head of secured loans Darren Hickman.
"Whatever type of loan they are looking for, they will find Alliance & Leicester offers a very competitive deal," he adds.
Mr Hickman also points out that Alliance & Leicester has a "responsible approach to lending", in order to make sure than people do not borrow more than what they can afford.





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