For most people, there are occasions in life when getting a loan can be a convenient method of generating a significant amount of cash to pay for purchases such as a new car or home improvements that may require more money than you have in your savings account.
When you take out a secured loan, you are borrowing money based on your ability to repay the monthly repayments, having put forward a high-value asset (usually your property) as collateral. Most secured loans can be arranged quickly and easily, so if you need a significant purchase – anything from a new car to home improvements – then a secured loan could help.
Secured loans may offer lower interest rate compared to unsecured loans, however you must be aware that if for any reason during the term of the loan you find that you can’t afford to make the repayments, then the lender is legally entitled to begin proceedings to take possession of your home, and sell it in order to repay the money you borrowed.
Similarly, bridging loans are available for when you need a short term solution to cover a large sum of money. The most common form of bridging loan is taken out when a person moves home and isn’t able to sell their current home in time, or for when a property is purchased at an auction. Bridging loans often work best when the term of the loan is short because due to the large amount of money involved, the repayments can also be high.