11 November 2007

Secured homeowner loans and protection

Many individuals would rather avoid taking out secure homeowner loans if at all possible. This may not come as a surprise purely and simply because it requires putting their home up as security against the loan repayments, meaning that if the repayments are not made then it is likely that the home will be taken in payment. Secured homeowner loans do have their advantages though!

Secured homeowner loans can allow individuals to borrow a larger sum of money, usually despite their credit ratings, over a longer period of time. This may make debts more manageable and enable an individual to get out of debt once and for all. However, this may not reassure homeowners that are struggling with debt and do not want to lose their homes, but maybe the protection associated with secured homeowner loans will!

UK secured homeowner loans are protected by the 1974 Consumer Credit Act and regulated by the Financial Services Authority to a certain extent. Both actually cover loans of up to £25,000. The terms and conditions attached to these regulations should give individuals peace of mind when they are looking to take out secured homeowner loans.

As long as you keep a loan below the threshold of £25,000 it is regulated, any amount over that is not, so if you planned secured homeowner loans do exceed £25,000 then be sure to read all terms and conditions thoroughly and opt for a trusted lender. Good reputation is everything when your home is on the line!

You may choose to opt for enhance protection of your debt. Secured homeowner loans can be covered by payment protection insurance and this actually ensures that your debt is paid if you fall sick, have an accident or are made redundant and are unable to work. These measures are of course optional, but given the choice between making your debt manageable and struggling for years to come should prevail in the debate over secure homeowner loans.

About the Author

Jason Hulott is Business Development Director at Debt Consolidation Loans service, PolarLoans. Visit Polar Loans now for more information about Homeowner and Secured Loans.

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