- £5,000 - £250,000+
- Choice: 600+ plans
- 95+% LTV available
- Poor Credit OK
- Trusted 5★ partner
- Discover your Options
If you need to:
then this type of loan may suit you.
We have access to the widest range of secured loans in the UK via our trusted 5★ partner. Using our free quote service means you'll get top class guidance and avoid making the wrong choice.
Advantages over an Unsecured loan:
But keep in mind that an unsecured loan does not require you to offer your home as security - your property is not (normally) at risk. When using a secured loan you need to have a mortgage already and have equity1 in your property.
Advantages over a Remortgage:
1 this is the value of your home less the remaining mortgage balance. For instance your home may be worth £230,000 and your mortgage balance is £70,000. The equity in your home is therefore £160,000.
Our service gives you access to a wide range of UK lenders many of whom can provide very large loans. The actual amount you can borrow depends on:
See an example of how these guidelines are used.
When you complete our free-to-use enquiry service our trusted partner will assess your requirements and contact you with the options that most closely meet your needs. Because our partner is one of the largest in the UK we would expect you to have a significant number of options to choose from.
Secured loans are so-called "second charge" loans. Only if there is a mortgage on a property (i.e. a "first charge" loan) can you obtain a "second charge" loan. If you have paid off your mortgage completely then it will not be possible for you to get a secured loan. If you need to borrow a significant sum then you will most probably have to remortgage your property.
A lender is likely to offer a range of loan products with a range of LTVs and interest rates. It is typically case that as the LTV% rises the interest rate on the loan rises too since the lender considers them to be more risky. The LTV is the ratio of maximum lending value to the property value. e.g. if the LTV is 60% and the property value is £190,000 then the maximum lending permitted is £114,000.
So, how do the LTV, mortgage values and a lender's attitude to risk combine?
As an example imagine a lender sets the LTV on a loan to 60%. If your property has a market value of £220,000 then the LTV means that the maximum total lending against the property (first + second charge loans) is £132,000. If your mortgage balance is, say, £80,000 then this is deducted from the £132,000 giving a balance of £52,000 available to use.
But the lender may not offer you the full £52,000. The lender will assess your ability to repay a loan, and also judge your credit risk by looking at your credit history. All lenders have a duty to lend responsibly.
Like many in the UK you might have built up a large unsecured loan debt - things like credit cards, car finance, bank overdrafts, payday loans, etc. All of these forms of unsecured debt tend to have high monthly interest costs and can be a serious drain on your monthly budget. As an aside the average unsecured debt in the UK is £3200, with many owing much, much more.
So, when trying to get to grips with your debt you can look to consolidate it all into a secured loan at a lower rate, and if necessary extend the repayment period to further reduce your monthly payments - but take care not to extend the repayment period longer than necessary as it may increase the overall costs of the debt. Also remember that by doing this you are securing your loan on your property.
As you'll see above a these loans have numerous good points, but you should remember three things if you are thinking of using one:
The thing to do is use our Quick Start tool. It will help you to identify many of the options available to you based on no more than 4 simple questions. Give it a go!
Lenders who offer secured loans recognise that there is a proportion of people who for one reason or another have incurred negative marks on their credit file. Yet, they own their home and have a decent income. While a personal loan provider my reject their application a secured lender has much more flexibility to accept their enquiry. Being able to secure a loan on a property allows the lender to see a lending opportunity where an unsecured lender might only see risk.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOAN SECURED ON IT. IF YOU ARE THINKING OF CONSOLIDATING EXISTING BORROWING YOU SHOULD BE AWARE THAT YOU MAY BE EXTENDING THE TERMS OF THE DEBT AND INCREASING THE TOTAL AMOUNT YOU REPAY
* Actual rate will depend on personal circumstances and credit assessments. To find out what rate you can get apply below. The current Representative APRC is 9.1%, including lender and broker fees.
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