In the past, only the homeowners and those owning valuable assets could think of getting financial aid. This is because submission of collateral was more or less mandatory for borrowing money. Nearly all the lenders used to offer secured form of various types of loans. A lender runs minimum risk with secured loan as the loan amount is covered with the security put forth by the borrower. However, secured loans are quite a risky proposition for the borrowers as the home/any other property put forth as the collateral is at stake. The lender has the legal rights to seize the home/property in case the borrower fails to repay the loan amount in full and on time. The home/property can be sold off by the lender to recover the loan money. Many UK homeowners are losing their homes every year to the lenders due to their failure to repay a secured loan in full.
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