P252 CEEFAX 252 Mon 10 Nov 21:15/22 1/4 W INSECURE 'SECURED' LOANS It's njvjr been easier to get credit says the magazine Consumer Voice. Britain is in the midst of a borrowing boom with shops, credit card companies, finance houses and banks falling over themselves to lend money to this "live now pay later" generation. Because of this, more and more people are unknowingly risking the loss of their homes as a result of taking out secured loans without realising the implications involved. MoreP252 CEEFAX 252 Mon 10 Nov 21:12/18 2/4 INSECU5J 'SECU5ED' LOANS People tempted bz advjrtisjmjnts in the press to take out secured loans often don't understand the implications involved, says Consumer Voice. A borrower who offered his house as security for a loan told the magazine: "I njvjr realisjd I could lose mz home, I thought that bjcausj it was a secured loan I was secure". Nothing could bj further from the truth - a secured loan is like a second mortgage. MoreP252 CEEFAX 252 Mon 10 Nov 21:01/14 3/4 INSECURE 'SECURED' LOANS Consumer Voice is worried that people are being encouraged to pay off existing debts bz taking out a "secured" secured loan. A secured loan means that if you borrow money and offer your home as security and then find that you cannot pay the monthly instalments, the lindjr can repossess the house to pay off the debt As more than 64% of the population are home owners more people than ever before can offer a home as security on a loan. MoreP252 CEEFAX 252 Mon 10 Nov 21:22/43 4/4 W INSECURE 'SECU5JD' LOANS The National Consumer Council has put forward proposals to reform the terms of secured loans: Advertising should make clear that it is a second mortgage Lenders to !utomatically include the cost of insurance against death, unemployment and sickness in the loan Consequences of default to be printed IN RED on the first page of the loan agreement. Loan agreements to bj printed in plain English More