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    secured loans?

    does anyone have any info on them?
    my friend said she got one instead of touching her mortgage and the deal she got seems too good to be true! basically so i am curious as we really need new windows but i dont want to borrow in with the mortgage thanks in advance

    15 Comments

    To be avoided if at all possible imo. You could end up loosing your home for the sake of the new windows you have just had fitted to it.

    I would never go with a secured loan. If you need a loan in the first place it's probably cos money is short, so you may well not be able to make the repayments and then you are totally *insert rude word here*.

    Get an unsecured on if you really need a loan.

    jtx;6904047

    To be avoided if at all possible imo. You could end up loosing your home … To be avoided if at all possible imo. You could end up loosing your home for the sake of the new windows you have just had fitted to it.



    Babbabooey;6904065

    I would never go with a secured loan. If you need a loan in the first … I would never go with a secured loan. If you need a loan in the first place it's probably cos money is short, so you may well not be able to make the repayments and then you are totally *insert rude word here*.Get an unsecured on if you really need a loan.



    Agreed. Apply online, but make sure you read the small print about whether the loan is secured or unsecured. Most tend to be unsecured, but not all.

    Original Poster

    thanks guys not sure what to do we have done all the work we need apart from the windows and i dont have the money to pay upfront so thought maybe adding it as secured not sure what to do tbh

    Secured means that she has put her house up as security against the loan.

    OK if she pays off money, but if she fails to make payment she loses house too.

    I agree,if you need to get a loan never get a secured one.

    Can't you do what people used to do in the olden days,save up lol

    Y'know it might be OK to put it onto your mortgage because sometimes mortgage interest rates are much lower than loan rates, but only if the following conditions apply.

    1 You have a very low interest rate deal
    2 You can borrow extra against your equity at the same rate
    3 Your mortgage allows overpayments without penalty
    4 You are able to overpay

    Let's say that you want to borrow the cash and pay it off over three years.

    If so, work out how much your mortgage payments would be with the additional amount.
    Work out how much you would have to overpay to clear the amount borrowed in three years' time.
    Compare that amount with the amount you would have to pay in getting an unsecured loan.

    If the figures compare favourably, then go ahead and put it on to the mortgage.


    BUT


    Don't let your payments slip. Be strict and clear the additional amount borrowed in your chosen timescale.


    Hope this helps.

    Original Poster

    cannyscot;6904370

    Y'know it might be OK to put it onto your mortgage because sometimes … Y'know it might be OK to put it onto your mortgage because sometimes mortgage interest rates are much lower than loan rates, but only if the following conditions apply.1 You have a very low interest rate deal2 You can borrow extra against your equity at the same rate3 Your mortgage allows overpayments without penalty4 You are able to overpay Let's say that you want to borrow the cash and pay it off over three years.If so, work out how much your mortgage payments would be with the additional amount.Work out how much you would have to overpay to clear the amount borrowed in three years' time.Compare that amount with the amount you would have to pay in getting an unsecured loan.If the figures compare favourably, then go ahead and put it on to the mortgage.BUTDon't let your payments slip. Be strict and clear the additional amount borrowed in your chosen timescale.Hope this helps.



    thank you that helps alot and gives me a better view of it sharon :thumbsup: rep added also

    whatsThePoint;6904295

    Save? I don't think that word is taught in schools anymore due to it … Save? I don't think that word is taught in schools anymore due to it being unfair on those coming from disavantaged families, Todays child is taught to spend until your in great debt so everyone is equal, well unless you plan on being in parliament in which case your taught its spend spend spend and then claim it all back



    You're right,my parents never borrowed money and i'm the same,it must have rubbed off on me,if i can't afford something i don't have it,i save until i can.

    Not having a go at you OP,just in general a lot of people use credit all the time.

    Banned

    if you cant afford you cant have.......simple really

    debts are for losers

    Generally speaking secured loans charge less interest as the lender knows that he will get something back (either the loan plus interest or whatever was secured against the loan). With an unsecured loan the risk to the lender is greater, as there is no collateral, so the interest rate is usually higher to reflect the increased risk.

    It's true that if you default on a secured loan you could end up losing a lot more than the loan value, but that's what lending & borrowing is all about - taking risks & hoping the worst doesn't happen.

    Supermod

    People who are thinking of getting a secured loan need to realise that they shouldnt be getting a loan if they are worried that they will fall behind with payments. If you wont fall behind, go for it.

    magicjay1986;6905701

    People who are thinking of getting a secured loan need to realise that … People who are thinking of getting a secured loan need to realise that they shouldnt be getting a loan if they are worried that they will fall behind with payments. If you wont fall behind, go for it.



    With all due respect,nobody knows what the future will hold,how would anybody know if they are likely to fall behind in years to come.

    avoid secured loans at all costs imo,if you cant get an unsecured loan then you cant really afford whatever you are buying

    Original Poster

    its not a case of not affording an unsecured loan i was only asking as my friend was telling me about hers and i didnt know anything about them and also i am getting a loan as it is easier for me to do the home improvements and i have budgeted for payments also i have never taken on what i cant afford but i do normally opt for interest free payment where i can ie argos stuff like that nothing heavy at all but thank you for taking the time to reply folks
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