One of the biggest and most successful lenders in business today, Barclays has a global customer base of more than 48 million. Specialising in a wide variety of commercial and business banking services, Barclays also offers a wide range of secured and unsecured loans. Committed to competitive borrowing costs, Barclays currently advertises a representative 5.5% APR on personal loans between £7,500 – £15,000. In terms of secured loans, Barclays offers larger lending products secured exclusively on property. The loans themselves can be used for any purpose, though can only be secured on a home or business property.
Your personal circumstances and requirements will determine whether you can or should choose a secured loan over a personal loan. So before heading to Barclays or any other major lender, we strongly advise considering the unique features and benefits of a secured loan.
A secured loan provides an entirely different access point to typical ‘consumer credit’. The idea being that with a secured loan, something tangible is offered by the borrower to cover the value of the loan. In the case of consumer credit – aka personal loans – it’s simply a case of promising the lender you’ll repay the loan as required.
Hence, these two sources of funding are very different.
From the perspective of the lender, secured loans are significantly less risky than personal loans. If tangible property is used to cover the cost of the loan, there’s little to no risk of the lender losing out long-term. Precisely why secured loans typically attach lower rates of interest and more agreeable terms in general.
As mentioned above, most major lenders like Barclays offer secured loans exclusively when property is used as collateral. The greater the value of the property, the more the borrower can access. In addition, higher property values typically translate to even more competitive interest rates and borrowing costs.
In terms of benefits, the comparative simplicity of obtaining a secured loan is a huge plus point. Even if you have an outstanding credit score, the process of applying for consumer finance can be long-winded and complex to say the least. By contrast, offer the lender sufficient collateral to secure the loan and things can be wrapped up in a matter of days.
As touched upon, it’s also possible to access much lower interest rates and borrowing costs with a secured loan. The less risky the agreement is for the lender, the more likely they are to reduce overall borrowing costs. This makes secured loans a particularly useful option when looking to consolidate existing debt.
Not only are personal loans restricted to those with strong credit reports, but they can often only be obtained for very specific purposes. You often have to disclose exactly what you intend to use the funds for, before the lender will approve your application. In the case of a secured loan, the funds can be used for absolutely any legal purpose whatsoever.
If looking to tap into the most competitive rates and the lowest overall borrowing costs in the UK, we’re standing by to take your call. We are able to provide a better deal than Barclaycard rates. Working closely with the independent lenders up and down the country, we’re able to offer exclusive deals and discounts you won’t find elsewhere.