Loans -
Borrwers demand secured loans - 24/02/2008
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Borrower demand for secured loans has soared in the last six months.
According to figures released by financial comparison website MoneyExpert.com, there has been an 85 per cent increase in homeowner loan applications, as mortgage-holders look for lower rates.
The figures show the average APR on a £15,000 unsecured loan is around 8.44 per cent. However, people who take out a secured loan against their home can obtain interest rates around 2.5 per cent lower, with some lenders offering 5.9 per cent APRs.
Sean Gardner, chief executive of MoneyExpert.com, said: "Historically secured loans were seen as something of a product last resort. But these days they are far more attractive to homeowners who are looking for a competitive rate of interest."
Mr Gardner added: "One thing to be cautious of is lender or broker fees. Some of the headline interest rates may not include fees which would normally not apply on an unsecured loan.
"That said, even with a fee the lower rates available on homeowner loans make them worthy of serious consideration."
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Services Authority. |
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