With the advances that have been made in all spheres of life, the financial market has also undergone an enhancement. Loans can now be taken up by borrowers just by pledging collateral like their homes with the lender. These loans are called Secured Home loans. Money is borrowed by borrowers at virtually any terms and conditions from the lenders of the secured home loans.

Money that is borrowed through secured home loans can be used by the borrowers for any purpose like a vacation, home improvement, car purchase, medical expenses, debt consolidation, funding college education, etc.

As the name itself gives a clear idea of the nature, secured home loans require the home of the borrower in the form of collateral for the loan. By pledging the home, it would mean that the title of the house would be transferred to the name of the lender until the repayment of the secured home loan is made. After repayment, the title would then be transferred back to the borrower’s name. Meanwhile the borrower can continue to live in the house during the loan term.

With secured home loans, the amount that can be borrowed ranges from £5000-£75000. The amount can be increased if the equity of the collateral is high. A term of 5-25 years is given for repayment of the secured home loans. The rate of interest charged on secured home loans is very low due to the long term nature of the loan.

While borrowing secured home loans, the borrower may think that he is risking his house. But this is not so. Only in the rarest of cases, this mishap occurs that the house is lost to the lender. The house of the lender is virtually risk-free as the monthly repayment installments are very small due to low rate and longer term.

Online search for secured home loans can be made so that quotes from the numerous lenders can be compared and the lowest rates can be selected and applied for.

Secured home loans are the best bet for borrowers if they want to borrow a good amount and also not burden themselves during the repayment.

By : Aldrich Chappel