secured loan or mortgage?

When trying to secure finance it is important to understand the advantages and differences that separate a secured loan from a mortgage. If you own your own home, then you probably have a mortgage on it. As a means of buying a property or raising finance on a property with no redemption penalties on it’s mortgage, and where time is not a factor a mortgage may well be a good option..

The good thing about modern secured loans however is that they don’t suffer from high redemption charges. By this I mean, if we can compare it to a fixed rate mortgage. Many mortgages, have redemption charges if you pay them off during their discount or fixed rate period.

Secured loans on the other hand can be paid off at any time and in most cases all you have to pay is one months payment. This means that if you need a more flexible approach to finance, and want to be able to pay off a loan when it’s convenient for you, if you have redemption charges to pay on your mortgage if you apply for a re-mortgage, or if you just need to arrange a loan in a hurry then a secured loan could well be right for you.