A secured loan, which is a loan only available to homeowners as it must be secured on property, is a good way for a homeowner to raise funds for a number of purposes.

The interest rates for a secured loan currently commence at about 9% for employed applicants with a good credit rating.

However even for applicants with poor payment profiles a secured loan is still possible but the interest rate will be considerably higher.

For the self employed the position, as regards a secured loan, is very different now than it was before the credit crunch.

In the past self employed borrowers could self declare their own earnings without any further proof being required.

They had simply to write on a letter head that they certified that their net profit was whatever, sign it and that sufficed.

Now an accountant's letter at least is a requisite and sometimes the secured loan lender will ask for full accounts.

As such homeowners, whether employed or self employed, who fit the criteria really should consider a secured loan when they want to borrow money.

Apart from the interest rates being good, secured loans can be repaid over anything from a five year to a twenty five year period making the repayments taylor made to suit individual needs.

Secured loans can be used for almost any legitimate purpose, but many people do not appear to realize this.

Adverts for secured loans often made it appear that these home loans were to be used for debt consolidation, and little else.

Secured loans are certainly a good way to consolidate outgoings on credit cards, etc, saving money and simplifying finances, but they have many more uses than this.

A secured loan can be used to buy a car, a caravan, a motor home, a boat, etc, etc.

It can also be used to carry out home improvements, and with cash in hand there are savings to be made by funding improvements in this way.

A homeowner loan can be the method of funding a wedding, paying for the exotic holiday of your dreams, or even providing your children with a private education to give them the best education available.

If your dream is to own a second home in the sun this can also be paid for with a homeowner loan.

Some secured loan lenders are not prepared to grant loans for second home purchase, and so it is always best to check before applying that the purpose of the secured loan is not against that particular lenders rules.

Paying for a holiday home in the UK or abroad is simple when a loan of this sort is used to fund it.

It eliminates the need for a deposit as would be required if arranging a mortgage either from a UK or a foreign bank.

With so many property bargains in the market at the moment there will never be a better opportunity to buy a second home whatever country you wish to buy in.

There are many Brits selling up in the Spanish Costas and if Spain is your country of choice this is a good time to realize your dream.

As is obvious the better things in life are available to those who release some equity in their property to make life more enjoyable.

Posted 28/12/2009 19:18:18