Loans come in all shapes and sizes and one loan for which most people can apply is unsecured loans. These loans as their very name makes clear do not require any security at all which makes them available to everyone in theory at least.
Being unsecured leaves the lender open to losing the money lent if the unsecured borrower defaults in the loan repayments.
The lack of security involved in these unsecured loans is the reason that lenders attach high rates of interest normally to these unsecured loans.
With unsecured loans the lender often requires proof of what the loan is going to be used for.
It is not just the matter of the borrower stating that the loan is to be used to buy a new kitchen and being handed the loan cheque, as the lender will generally ask for sight of two or three estimates for the kitchen.
For those living with parents, etc. or in rented property the only loan for which they are eligible is the unsecured loan.
Homeowners however are eligible not only for unsecured loans but also for homeowner loans commonly known as secured loans.
The names given to these loans says exactly what they in fact are. They are homeowner loans as only homeowners can be granted a homeowner loan , and secured loans, as they are secured on residential property.
Homeowner loans or secured loans to use their other name come with good rates of interest as the lender feels pretty safe that the borrower will in fact always pay their secured loan.
A additional advantage of secured loans is that no proof of purpose is required and it is just a matter of sating on the application what the reason is for applying for the homeowner loan.
So saying there is really no better type of loan for homeowners than secured loans.
Being unsecured leaves the lender open to losing the money lent if the unsecured borrower defaults in the loan repayments.
The lack of security involved in these unsecured loans is the reason that lenders attach high rates of interest normally to these unsecured loans.
With unsecured loans the lender often requires proof of what the loan is going to be used for.
It is not just the matter of the borrower stating that the loan is to be used to buy a new kitchen and being handed the loan cheque, as the lender will generally ask for sight of two or three estimates for the kitchen.
For those living with parents, etc. or in rented property the only loan for which they are eligible is the unsecured loan.
Homeowners however are eligible not only for unsecured loans but also for homeowner loans commonly known as secured loans.
The names given to these loans says exactly what they in fact are. They are homeowner loans as only homeowners can be granted a homeowner loan , and secured loans, as they are secured on residential property.
Homeowner loans or secured loans to use their other name come with good rates of interest as the lender feels pretty safe that the borrower will in fact always pay their secured loan.
A additional advantage of secured loans is that no proof of purpose is required and it is just a matter of sating on the application what the reason is for applying for the homeowner loan.
So saying there is really no better type of loan for homeowners than secured loans.
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