There might be a number of good reasons. For example, there could be a large redemption penalty when remortgaging, or you may have secured a fixed rate in the past that is still highly competitive compared to current interest rates.

By using a secured loan, the redemption penalties are avoided and the current fixed rate will be protected, as the original first mortgage will remain in place.

A mortgage can work fine for debt consolidation. However, the majority of people are likely to want to repay earlier than their existing mortgage term. By choosing a secured loan then you can have the freedom

to choose the best repayment schedule for the extra borrowing

without the need to change the payments on the existing mortgage.

After arranging a mortgage many people have changes in their circumstances. If you have had some credit problems since taking on your wxisting mortgages then

to remortgage might mean that your rate could be higher

that you expected. In this case a secured loan could be

more cost effective as you could receive the funds without

giving up the best prime rate that you currently have with your existing lender.

Secured loans can be processed from initial enquiry to completion a lot quicker than a traditional first charge mortgage. Depending on the loan amount, the case could be completed and paid out iine less than a week. This can be advantageous if you have to raise funds quickly.

You can use the secured loan for almost any purpose. Typically, if the purpose is legal then the loan can be processed. Many first charge lenders can be difficult when it comes to the purpose of refinancing.

When you have made the decison to take on a secured loan, you will need to search and comapre all the available offers on the market to the find the best deal that suits your unique requirements. Interest rates and repayment periods will differ from lender to lender as well as the borrowing levels and terms of the loan regarding early redemption penalties.

It is wise to choose a broker who has the ability to search the whole market for the best deal and not one who is tied to a narrow group of lenders. Also there will be limitations to the options available depending upon your credit history so it is advisable to shop around to find the optimum secured loan for your needs