For many years one of the unique selling points of secured loans has been something of a myth.

It has been advertised that the APR of secured loans is often more competitive than unsecured loans because they are less of a risk to lenders.

The loan is secured on property so applicants are less likely to risk missing payments.

However, this has not strictly been true. Over the last 6 years secured loans have typically been offered at a higher rate than most leading unsecured loans.

Until today! (Well, I only found out today…)

FirstPlus Homeowner Loans are now available through an exclusive partnership with moneysupermarket.com at the highly competitive and cheapest current UK online rate of just 6.2% Typical APR.

Here’s a link if you want to find out more

This rate is now one of the cheapest loans or lowest apr loans on the market among both secured and unsecured loans.

Although Netloans.co.uk are claiming to offer the lowest APR in the UK of 5.9% but if you read all the info, this is only available on loans over £75,000.

Only a couple of unsecured lenders (Moneyback Bank 6.1% & Northern Rock 6.2%) are offering a better rate than Firstplus and these lenders have been consistently offering market leading loan rates.

I’ve mentioned before in previous posts that APR is calculated as a 2/3 average of all loans sold to FirstPlus must be doing some spectacular deals at the moment.

Their own loan (directly available from www.firstplus.co.uk not the exclusive moneysupermarket.com offer) is currently on offer until June 15th 2007 at just 6.9%