I discovered that she was pregnant we became
frantic. Where we lived at the time wasn’t exactly the size
required for a young family! We needed a starter home; a place
for our child to grow up. We wanted to buy somewhere that
wasn’t too big but equally allowed us the space to have a room
for our child when she was born.
Getting a mortgage was going to prove difficult as both my wife
and I already had bad credit records as a result of student debt
and a couple of missed payments. A friend suggested we try to
source a secured loan to allow us to get a foot on the property
ladder.
The Collateral
One of the terms of a secured loan is that in order for the
lender to process the application, you would have to offer
something up as collateral, usually something of equal or more
value than that of the actual loan. We were getting a loan for
GBP 45,000; unfortunately, there was nothing we owned that was
worth that much. We were at a loss to find something either one
of us possessed that would even come close. Fortunately, my
wife’s parents were gracious enough to allow us to use their
home as security for the loan.
Before the house could even be considered as collateral the
bank had to send out property valuers to confirm the market
value. Fortunately, the house was valued at over GBP 300,000,
well over the amount of equity needed for the secured loan. In
addition, my wife’s parents had no mortgage or loans themselves
secured against this property. Once the house was valued and
written in as appropriate collateral for the loan, we entered
the credit check phase of the loan process.
Remember, this is where my wife and I had some serious
problems; neither one of us expected to be able to walk away
with the loan money. Thank goodness that the person reviewing
our application was willing to work with us in getting our
credit reports cleared up. He made a list of all the debtors
that my wife and I had to contact to clear up some of the
financial problems. After a week of discussions, some pleading
and promises of prompt payments upon the receipt of the secured
loan, we were finally able to sign the completed application and
wait for final approval.
The Payout
Once the papers for the secured loan were signed and processed,
the money was deposited straight into our bank account. We paid
off our creditors as we had committed to and the remainder of
the money went towards purchasing a nice 2 bedroom mobile home.
A mobile home wasn’t exactly what either of us had imagined as
our first home, but it was still a lovely feeling walking
through the door of own home for the first time rather than
renting some dingy flat.
We had a home to call our own, a place to raise out daughter
and a place we could decorate as we saw fit. The feeling of
freedom and accomplishment was overwhelming. Taking the chance
on a secured loan was a good idea and one that brought us home!
About The Author: Derek Rogers represents Accepted -
http://www.accepted.co.uk/ – a UK based secured loans site.
Please use the HTML version of this article at:
http://www.isnare.com/html.php?aid=112304
==================