Rates for secured loans are becoming as competitive as unsecured deals
February 22, 2008 by admin
Filed under News, News-Loans
Homeowners looking for a significant cash advance can now choose from secured loan deals which are even more competitive than the average unsecured loan rate, financial experts have claimed. 
According to Moneyexpert.com, the average APR on a £15,000 unsecured loan is an estimated 8.44 per cent.
However, borrowers with the option of securing the loan against their property have been able to get interest rates as low as 5.9 per cent, almost 2.5 percentage points cheaper than the average unsecured loan rate on the market for balances of £15,000.
Sean Gardner, chief executive of MoneyExpert.com, said: “Historically secured loans were seen as something of a product of last resort.”
“But these days they are far more attractive to homeowners who are looking for a competitive rate of interest,” he added.
Findings from MoneyExpert.com reveal that demand has increased for secured loans in the past six months with an 85 per cent rise in the number of applications seen in the last quarter ending in January 2008.
Meanwhile, further research from finance experts have shown that 1.39 million have switched mortgage provider for a better deal in the past six months.
