PUBLIC MARKS from adfunk with tags "home loans" & "Secured Loans"

A loan is a type of debt. All material things can be lent; this article, however, focuses exclusively on monetary loans. Like all debt instruments, loans entail the redistribution of financial assets over time, between the lender and the borrower. The borrower initially receives an amount of money from the lender, which they pay back, usually but not always in regular installments, to the lender. This service is generally provided at a cost, referred to as interest on the debt. A borrower may be subject to certain restrictions known as loan covenants under the terms of the loan.

People are struggling to manage their debts and with a large number of fixed-rate mortgages coming to an end in the next year, it will become more difficult for the borrowers. Credit is likely to become even more difficult to obtain in the near future. Figures from an independent loan comparison website revealed that 38 per cent of people who had applied for a new credit card in the past three months were turned down. One-fifth of the applications for a new personal loan were also rejected.

A secured loan is a loan in which the borrower pledges some asset (e.g. a House/Property) as collateral for the loan. Secured loans relieve the lender of most of the financial risks involved; he may thus offer attractive terms for the borrower on interest rates and repayment period. For a homeowner it makes sense to use the value (equity) in your property to borrow at a special rate since with a secured loan a borrower gets choices about how much one can borrow and how quickly one can pay back the loan. Thus, a homeowner can get an affordable secured loan.