Secured v unsecured

theeastwoods

Hi

I'm wanting to take out a loan of around £15,000 - £20,000 to pay off credit cards and overdrafts. Although we're managing to pay them every month, I'd like to know that an end's in sight!

The current terms of our mortgage run out in November, so we'll be looking for a new deal. I wanted to know what's the best type of loan to get to make sure we still get a good deal on a new mortgage. Could we do this with a secured loan? Or should we avoid them at all costs?

david39

Mortgages are always secured loans - that means, if you are unable to make the repayments, the mortgage company can repossess your house and sell it to recover their money. There is a charge registered on your property at the Land Registry which means that you will not be able to sell the house without the mortgage company's knowledge and they will require repayment in full before releasing that charge.

If you have a good credit history, it is possible to get unsecured loans to the value you are seeking but if you have a poor track record then you will be most likely to be offered only a secured loan. If you are offered an unsecured loan, make sure that you are being charged a realistic interest rate before you sign anything.

Thrugelmir

Post up some details of your house value, current mortgage balance and income.

That'll paint a better picture of your overall finances.