Secured loans simpler than trying to find a remortgage, expert claims

Thu, 21 Sep 2006

Taking out a secured loan could be a simpler process than trying to find a remortgage, an expert has claimed.

The application process for secured loans is easier and faster, there are no legal fees and no restrictions on the purpose, stated Robin Amlot, senior editor of AWD Moneyextra.

Furthermore, a secured personal loan allows borrowers to take more money than most unsecured personal loans.

However, Mr Amlot warns that borrowers should "think carefully" before taking out secured personal loans, as their home could be at risk if they fail to make payments and default on the agreement.

"It's important that people understand exactly what they’re taking on," the expert remarked.

"A recent survey by Citizens Advice underlines the lack of knowledge among consumers with more than one in ten thinking they can miss payments on secured loans but that their home will always be safe – this just isn’t the case."

Although forcing the sale of a property is highly unusual in the UK, creditors do have the right to take legal proceedings if borrowers default on a secured loan.


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