Secured Lending has been enjoying a bit of a renaissance over the past 12 – 18 months. This has been driven partly by the increased demand for mortgage products and also by confidence returning to the economy in general.
With mortgage rates remaining at their all time historic low, clients are looking to remortgage to try and bag a cheap deal. With High Street Banks still being quite restrictive with their lending policy, this means that an increasing number of people are being driven to seek alternative funding solutions.
Secured Loans therefore are proving very popular, especially where clients need to consolidate credit to reduce monthly debt payments. Consolidation loans, can usually work out more expensive over the long run, but can free up enough cash to make a real difference to household budgets.
Protecting your credit rating is very important, particularly these days where banks are being very selective in the type of clients they take on. Consolidation loans, can stop missed payments by simply freeing up enough cash to take the pressure of managing multiple expensive credit payments.
Consolidation loans can also prevent people from sliding into Debt Management and/or IVA type scenarios. By maintaining a good credit rating or repairing an already poor one, you could expect in a fairly short time frame to once again qualify for competitive mortgage rates – keeping your finances back on track.