Secured loans play catch up with personal loans
Rates on secured loans are becoming more competitive than those on the average personal loan, according to financial comparison website MoneyExpert.
Research from the website found the average APR on a £15,000 unsecured loan is around 8.44%, while secured loan customers – people who secure a loan against their property – looking to borrow the same amount, can get interest rates of 5.9%.
Furthermore, there has been an 85% increase in homeowner loan applications in the quarter ending January 2008, compared to the quarter ending October 2007, MoneyExpert said.
Sean Gardner, chief executive of MoneyExpert, said: “Historically, secured loans were seen as something of a product of last resort. But these days they are far more attractive to homeowners who are looking for a competitive rate of interest. While these low rates can include an arrangement fee of as much as £995, the monthly savings to be made by opting for a homeowner loan can still be substantial.”