How to Get a Low Secured Loan Rate

Home equity is the difference between the value of your house and the loans that you've secured against it. You can borrow money against the equity in your property for a variety of reasons, including debt consolidation, home improvements, car financing, a holiday or even career development. If you want to get a competitive secured loan rate, you'll need to be considered a good lending risk. There are things that you can do to enhance your creditworthiness before submitting your application.

Pay Your Debts Punctually

If you've defaulted on any of your credit agreements during the last six years, you need to change your ways. All defaults are reported to credit reference agencies. The longer it's been since you last defaulted, the more likely you are to be offered a low rate homeowner loan. Pay by direct debit.

Correct Credit Report Mistakes

You can order a copy of your credit report from Experian, Equifax and Call Credit for £2 each. Before applying for a secured home loan, you should scrutinise this information and get any errors corrected. Lenders are unable to tell the difference between bad credit and poor quality data, so this process is essential.

Reduce Your Personal Debts

The less disposable income you have available, the more likely you are to default on the terms of the credit agreement. If you have money sitting in your savings account, it's advisable to use this money to reduce your debts. It's not only better for your credit rating, it's more cost effective.

Advice on Getting a Low Secured Loan Rate

Applying for a loan for homeowners isn't a decision that should be rushed. If you make too many applications in a relatively short timeframe, this will reduce the likelihood of acceptance. Each credit search is recorded for 12 months. It's essential that you verify that you're credit profile is appropriate for the lender.

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