Secured loans should not affect your existing mortgage

Secured loans are secured as a second charge on your property and should not affect any existing mortgage. These type of loans would normally be seen as beneficial both to the borrower and the lender, the secured loan company having greater security and the borrower receiving better terms for a second loan over and above a secured loan.

A secured loan can be used for any purpose you choose. Do not be tempted to borrow more than you need. The more you borrow, the more interest charges you will pay.

Borrow only the amount necessary for your needs over as short a term as is financially viable for you. There are fewer risks if you borrow over a short period as opposed to over a long term of years, with one’s conditions and finances more liable to alter ten years’ hence than say in three years’ time.

To protect your capability for repayment you should also consider loan repayment insurance. Although this will add to your monthly repayments, it can provide that peace of mind if you for instance find yourself made redundant at your place of work or suffer a serious or debilitating illness. It may also be worthwhile scanning the Web to find cheaper insurance – as lenders often do not offer the best terms for insurance whatever their terms for a loan are.