According to the Bank of England, secured loans are generally secured against the home, and are based upon the level of equity in the home, which is the market value of the property minus any loans or mortgage already secured against it.
Could a secured loan from Loanline help you?
With the value of properties in the UK soaring over recent years, many have found themselves with far more equity in their homes than they expected, and this has given many people the ability to take out large loans over longer periods and at lower interest rates.
In the final quarter of last year secured borrowing rose to over £14.5 billion, which reflected an increase of around £2.5 billion on the revised figure for the quarter. The figures were at the highest since 2004, and in many cases borrowers were taking out the loans to add even more value to the property by carrying out home improvements.
A third of homeowners would carry out DIY to further increase the property value according to Yorkshire Bank, with a further seventy percent expecting the value to rise within the next year.
Could a secured loan from Capital One Bank help you out?
A spokesperson for Yorkshire Bank, stated: “Some DIY projects, like fitting new kitchens and bathrooms or installing double glazing, can be costly. The sensible option for many could be to spread the cost of these projects by releasing equity and adding it on to the total mortgage repayments.”
Consumers that do wish to take out a secured personal loan against the equity in their homes are advised to shop around in order to find the best interest rates and deals, as these can vary quite significantly from one lender to another.
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