Inspector Good-Deal is on the case to solve the mystery of secured loans which seem to have disappeared off the loan market. Sometimes in life we need to borrow money and the disappearance of secured loans has caused confusion among Britain’s borrowers.
Ok, so personal loans are a great way to borrow smaller amounts of money, but what if you need to borrow more? If you need access to more funds for a larger purchase or project you used to be able to apply for a secured loan – ‘secured’ meaning the money borrowed was secured against your property or another asset.
But then something happened and secured loans underwent a transformation. Don’t be alarmed! Some of you will remember a time when Marathon chocolate bars became Snickers – a simple name change but the same great taste. Well, this is no different. Second charge mortgages are secured loans for homeowners enabling them to borrow larger amounts of money than standard personal loans can offer.
So, it’s a simple name change with the borrowing principle remaining the same. Secured loans have been rebranded following a European directive which came into effect on 21 March 2016, changing ‘secured loans’ to ‘second charge mortgages’.
It’s really nothing to worry about – if you need a larger loan to pay for house renovations, a wedding or that once-in-a-lifetime holiday you can still borrow money in the same way as you could with a secured loan. Discover more about the great secured loan mystery here. Not only is Inspector Good-Deal determined to get to the bottom of the great secured loans mystery, he’s also on a mission to get you the best deal on your second charge mortgage. Mystery solved!