Why a Secured Loan?
Secured Personal Loans Online
When money is lent to a homeowner to repair his or her home it is known as a home improvement loan. At StarLoans we offer secured personal loans for home improvements online. Since a homeowner loan is secured on your own property, you can enjoy the benefits of much lower interest rates. Furthermore, with these loans you can enhance your home to its optimum value at affordable borrowing rates.
If you are indebted to many lenders, it may be hard to keep track of interest rates and make timely payments. Secured personal loans online can help you with debt consolidation, which involves taking out a single loan to pay off all the smaller debts. Debt consolidation results in a lower overall interest rate and gives you the convenience of paying back only one loan.
If you are a homeowner with an existing mortgage, you can apply for a secured personal loan online. Our loans can be for any purpose but are normally used for home improvements or debt consolidaton. Take control of your finances and save money.
A Secured Loan has the advantages of enabling you to borrow:
1. larger sums
2. over longer periods
3. at lower interest rates
4. even if you have a poor credit rating
You should be aware that you are placing your home at risk should you default. See the section below titled "Warning: your home could be repossessed". Our regulator, the FCA, has issued guidance that repossession must be a last resort.
Secured Loans are typically in the range of £5,000 to £50,000 but can be as high as £100,000. StarLoans start at only £3,000 - secured personal loans are our speciality. Our online application form guarantees a fast response. Home improvements such as a new bathroom or double glazing need not cost the earth but can pay enormous dividends in terms of home comfort and enhanced property value. Apply for one of our secured personal loans online.
Secured Loans enable homeowners to use the free equity in your property to make home improvements, large purchases or to consolidate expensive debt.
Secured Personal Loans for Debt Consolidation Online
If a homeowner has expensive short term debt with unaffordable monthly repayments, refinancing at a lower interest rate can make sense - this is known as debt consolidation.
Remember if you lower your monthly repayments in return for a longer loan period, you may end up paying more in the long term.
Secured Loans can be a sensible alternative to remortgaging
Secured Loans can therefore provide liquidity to people who are "asset rich" but "cash poor". Secured Loans can also be a sensible alternative to remortgaging, especially if the costs of doing so are high or the homeowner does not want to surrender an attractive mortgage deal
What if I have a poor credit score?
If you are a homeowner, you may still be offered a Secured Loan because the lender has security to protect him from loss. Borrowers with poor credit scores can therefore obtain Secured Loans but:
1. you may need to show relatively more free equity in your home to support your application
2. you may have to pay a higher interest rate
Secured Personal Loans: repossession is a last resort
The Financial Conduct Authority (FCA) has provided guidance to lenders and brokers regarding secured loans. Star Loans fully complies with the following:
Lenders should not seek to repossess the borrower's property except as a last resort, where other forbearance options have failed. This means that lenders should explore all other possible options and should give proper consideration to any reasonable offer by the borrower to pay by instalments. Lenders should not insist unreasonably that the arrears are paid in one payment or in large amounts or within an arbitrarily short period. Lenders should not institute court proceedings unless and until all other avenues have been explored and have failed.
For court actions in England and Wales, there is a pre-action protocol for possession claims, as set out by the Civil Justice Council. The aims of the pre-action protocol are to ensure that the lender and the borrower act fairly and reasonably with each other in resolving any matter concerning arrears, and to encourage more pre-action contact to seek agreement. The second charge lender should contact the first charge (mortgage) lender to minimize any adverse impacts on the borrower.