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Protection
A secured homeowner
loan is subject
to The Consumer
Credit Act 1974.
The Act contains
strict regulations
about how money
is lent and covers
loans up to a value
of £25,000. Loans
for sums greater
than £25,000 are
unregulated. When
taking out a secured
loan you will
be asked to sign
a credit agreement,
which should be
read very carefully
as the terms are
binding. For regulated
loans of under £25,000
the lender must
provide a consideration
period of 7 days.
Lenders offer insurance
policies and payment
protection schemes
to cover your monthly
repayments in the
event of accident,
sickness, unemployment
and death (conditions
apply). Cover does
vary between lenders,
as does the cost,
therefore you should
check individual
policies for what
is included, and
just as importantly,
and more important
what they excluded.
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