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Over what length of time can I spread secured loan repayments?
Secured loans can usually be repaid over a period of around 5 to 25 years, though this can range from 3 up to 30 years depending upon the lender.
When you take out a secured loan you can generally enjoy far longer repayment periods than you would get with an unsecured loan.
However, it is worth remember that the repayments periods offered can vary based on a number of factors, including the lenders' own terms with regards to repayment periods and depending on how old you will be by the time the loan term comes to an end. You should remember:
- The loan term is usually around 25 years but can be longer
- The length of the loan term can depend on your age
- The loan term is usually far longer than with unsecured loans
Choosing your secured loan repayment term
When you opt for a secured loan you can enjoy a number of benefits. You will find a number of lenders offering very competitive rates on these loans, and you can also look forward to longer repayment periods.
The longer your repayment period the lower your monthly repayments will be, as you will be spreading the money that you borrow over a longer term.
With unsecured loans the repayment period offered is generally around five to seven years, although some can be up to ten years. However, with secured loans the repayment period is generally around twenty-five years, although some lenders offer thirty-year repayment periods.
There are pros and cons to selecting a longer repayment period. The obvious advantage is that by selecting a longer repayment period you can spread the repayments on your loan over a longer term, and this means that you will pay less per month, which will help to keep your outgoings down.
However, it does also mean that you will be in debt for much longer and it also means that you are likely to pay much more in terms of interest over the term of the loan.
You can compare each secured loan lender online in order to check what sort of repayment periods they offer.
However, do bear in mind that older applicants may not be able to get the longest repayment periods as you will need to meet the lender's maximum age limit at the time the loan period comes to an end, and the age limit is normally between sixty and seventy years of age.
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