Secured Loans UK
If disaster strikes, will you lose your shirt?
When they apply for secured loans UK customers often ignore the risks: if you can't meet the repayments, you could lose your home or your car. That's why it's essential to plan for disaster and to consider payment protection insurance; if you don't, you could end up in serious financial trouble.
When considering secured loans UK customers tend to look at the attractive interest rates and that's about it, but it's important to remember that you're taking a big risk. Because the loan is secured on property – your house or in some cases, your car – if you fall behind with repayments you could be forced to sell your house or vehicle.
With secured loans UK customers need to look very carefully at the repayments. Not only do you need to be sure that you can afford them now, but you also need to be sure that you'll still be able to make the repayments should your circumstances change. If a significant part of your income is based on overtime, commission or bonus payments, it's a very good idea to consider whether you'd be able to cope if those extras disappeared.
Another thing to consider is payment protection insurance, which covers your payments should you lose your job or become too ill to work. It does make your monthly repayments more expensive, but it's a good form of insurance against disaster. The price of such insurance differs from lender to lender so it's worth comparing rates both with and without payment protection.
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