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Secured loans

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Secured Loans

  • £5,000 - £250,000+
  • Choice: 600+ plans
  • 95+% LTV available
  • Poor Credit OK
  • Trusted 5★ partner
  • Discover your Options

Secured Loans

Secured Loans from £5,000 to £250,000+

If you need to:

  • make a large purchase (e.g. a car)
  • fund a large project (e,g, home improvements)
  • consolidate expensive debt to cut costs

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.

Finding Your Right Loan

  • Low Interest Rates - starting at 3.83% APR
  • Fixed Rate Loans Available
  • CCJs, Defaults & Mortgage Arrears Accepted
  • Loan search won't affect your credit rating
  • Large Choice of Plans
  • Excellent Service

The Advantages of a Secured Loan

Secured loans have a number of advantages over other direct alternatives such as a Remortgage or an Unsecured Loan:

Advantages over an Unsecured loan:

  • you can borrow much more - the maximum unsecured loan is limited to typically £15,000 - £20,000.
  • the APR% is often lower - because the lender uses your home as security
  • repayment periods can be longer - repay over 25 to 30 years (or less if you wish) compared to a maximum of 7 with a personal 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:

  • it's quicker to arrange (may be just 2-3 weeks)
  • the set-up costs are lower, and often not paid up front
  • you won't lose your really low mortgage rate (remortgaging would replace your previous mortgage)
  • are you self-employed? Then you stand a better chance of getting a loan
  • historical credit problems aren't such a big issue.

 

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.

How to Get a Loan

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:

  • Your property having a mortgage on it more info
  • Your property value being greater than the mortgage balance remaining.
  • A lender's maximum LTV (loan to value) more info
  • You demonstrating you can afford the repayments for the loan value you want
  • Your credit history - previous financial problems may have an impact on the lending decision

See an example of how these guidelines are used.

Compare Loan options

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.

More Information: Answers to Your Questions

Why is a mortgage required first?

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.

LTV - The Loan to Value measure

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.

How LTV & your mortgage influence how much you can borrow

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.

Should I consider consolidating my existing debts?

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.

Do secured loans have any disadvantages?

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:

  • your property acts as security for the loan - you risk losing your house if you fail to keep up your loan repayments.
  • you may be tempted to extend the repayment period to reduce your monthly payment, but doing so may increase the total amount you repay over the life of the loan.
  • the process of moving home becomes a bit more complex - you'll have a bit more paperwork to deal with.
What other loan alternatives exist?

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!

How tolerant are lenders of previous financial problems?

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

All About Secured Loans

Rates from 3.83% APR*

* 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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