Why use a Loan Broker
-
They can often secure the lowest interest rates for borrowers - leading to the most suited loan deal
-
The borrower only needs to give their details once. The broker will then use these to get the best possible deal from all the lenders they work with
-
Using a loan broker will guarantee a quick response to a loan enquiry
Risks of taking out a Secured Loan
-
A secured homeowner loan uses your property as the security against the loan
-
You need to be very sure that you can maintain the loan repayments for the term of the agreement
-
If you default on the loan the lender will be eligible to claim your property as payment for the outstanding balance
-
Failure to maintain the repayments will damage your credit rating, affecting any future borrowing.
What are Secured Loans?
Secured loans, are often referred to as homeowner loans and do require you to offer the lender security against the loan amount, this enables the lender to balance the risk of lending to you. With the vast majority of secured loans, this will be your property.
NB: Brokers do not offer loans directly, but act as an intermediary between a number of lenders who they work with and customers looking for a loan. Some loan providers only work with brokers.