First Plus loans are secured loans also known as homeowner loans. This means that if you default on an agreed repayment your home is at risk.

First Plus homeowner loans allow you to borrow up to £100000. The lending limit is higher with secured loans than with personal loans as the lender has security and can potentially repossess your home should you fail to make the repayments. In other words the security for the lender is bricks and mortar rather than potential damage to your credit rating. The minimum you can borrow with a First Plus secured loan is £5000.

The rates of interest on First Plus loans are variable so be prepared for your monthly repayment to go up should there be an increase in the Bank of England base rate. You can take a First Plus homeowner loan over five to 25 years.

Most loans taken from a lender like First Plus will be to either consolidate existing more expensive unsecured debt or to fund major home improvements like a new bathroom or loft conversion.

It is important to bear in mind that although the monthly repayments of a First Plus loan may point towards a cheap loan they are often calculated over a 25-year period and you could end up paying more interest in the long run. In addition your home is always at risk if you do not keep up with secured loans repayments.

Think carefully before securing other debts on your home. Your home may be repossessed if you do not keep up repayments on your mortgage or other debt secured on it.

Moneyextra.com recommends you take independent financial advice before acting on any article

2009-03-03 09:31:33 © Moneyextra.com

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