FAQs


Questions

Secured Loans
  1. What is a secured loan?
  2. What are the Pros and Cons of a secured loan?
  3. Can I get a secured loan if I have a poor credit rating?
  4. How does it differ to an unsecured loan?
  5. How much can I borrow?
  6. How long will it take me to pay off my secured loan?
  7. How can I get a secured loan?
  8. What can I use my secured loan for?

 


Answers

Secured Loans
  1. What is a secured loan?

    Secured loans are otherwise known as home loans. It is a loan secured against your property, which means that your home is at risk if you fail to make the required repayments. This means that you should be sure that you can afford to make payments to the secured loan before you agree.

    There are also advantages which you should consider, as a secured Loan can often offer you a much more favourable interest rate and they are also easier to obtain than an unsecured loan, even if you have a poor credit rating. Lenders are often willing to lend larger amounts of money as your home will be offered as security.

  2. What are the Pros and Cons of a secured loan?

    Like any financial commitment, there can be some Pros and Cons which are attached to a secured loan which you must be aware of. For more detailed information please speak to our AllClear Finance advisors on 0808 131 0038.

    Secured Loan Pros:

    • Cheaper interest rates than an unsecured loan.
    • You can cut you existing monthly payments on your debt.
    • You can usually borrow more with a secured loan than an unsecured loan as the borrowing will be secured against your home.

    Secured Loan Cons:

    • If you fail to make the monthly repayments then you risk losing your home.

  3. Can I get a secured loan if I have a poor credit rating?

    All Clear Finance have a strong panel of lenders, and our specialist loan advisors will do their best to find you a loan, no matter what you credit history. However, each case is unique, so the only way to see if you qualify is to contact us today.

  4. How does it differ to an unsecured loan?

    The main difference between these loan types is that the secured loan is secured against something of value, usually your home. Whereas an unsecured loan is not secured against anything but usually carries a higher interest rate.

  5. How much can I borrow?

    The amount that you can borrow for your secured loan depends on your personal circumstances, such as your house value and income. Contact AllClear Finance today on 0808 131 0038 and we will go through your finances and work out how much you can borrow.

  6. How long will it take me to pay off my secured loan?

    The amount of time that it takes you to pay back your secured loan is dependant on the original agreement. AllClear Finance can offer many different terms, so you can borrow different amounts and also spread the payments over a longer period of time. 

    Paying off your loan over a longer period of time does have the advantage that your monthly repayments will be more affordable to you, but you should remember that you will also have to pay back more interest.

    You may also be able to pay back your secured loan early but you should remember that you might incur extra charges.

  7. How can I get a secured loan?

    The best way to start your secured loan application is to get in touch with AllClear Finance, our secured loan advisors will look at your options and will try and get you accepted for a secured loan which suits your circumstances.

  8. What can I use my secured loan for?

    You can use your secured loan for a variety of different things. AllClear Finance would never restrict you with what you do with your loan. However in the past many of our customers have used their secured loan as a debt consolidation loan for their unsecured debts.



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Entering into an IVA may adversely affect your credit rating for up to six years from the date of approval.

Your property will be protected within an IVA but you may be required to release all or part of any equity during the period of the arrangement.

Failure to complete the term of an IVA can result in bankruptcy.

(In Scotland, a PTD is the equivalent to an IVA.)
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