A secured loan is another term for a homeowner loan, which is a loan secured by a charge on your property. The first charge on your property is called a mortgage. Calculate your monthly payments using our secured loan calculator.
Secured loans are often referred to as second or third charges - each charge is ranked in order of priority when your property is sold.
When applying for a secured loan, you should have at least as much equity in your property as your secured loan. However, there are special deals where you can borrow up to 125% of your property's value. If you would like us to help please apply here for a secured loan.
How much equity do you have in your property?
As a borrower you should have a clear idea of your property's realistic market value and the total amount of debt to be secured on it. Borrowers with a high loan to property value (LTV) or little equity may encounter difficulty in obtaining secured loans at low rates of interest.
Lenders normally offer secured loans from £7,500 up to £250,000. However, the interest rate will usually be higher than your mortgage so
borrowers of large sums should consider a remortgage instead.
Is a Secured Loan the best option?
Secured loans can be for any purpose, such as a house extension, a new kitchen or a car. Low borrowing rates can mean that they are suitable for refinancing expensive unsecured debt - this is known as debt consolidation.
However, remember that you are putting your home at risk. If your secured loan is for a relatively long term, such as ten years or more, you will end up paying a lot of interest. Maybe taking out an unsecured loanfor a short period of time could be the cheaper option!
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 ANY OTHER DEBT SECURED ON IT.
You have the right to see your credit file - simply contact Experianor Equifax.
A borrower with a poor credit rating, perhaps with mortgage arrears, CCJ's or defaults can still apply for a secured loan. The reason for this is that although you may have bad credit rating, lenders still have faith in you the borrower, because you are offering your property asset as security.
Nevertheless, there is still an increased risk for the lender and you will probably be charged a higher rate of interest. There are specialist companies who specialise in poor credit loans - they should be sympathetic to your circumstances.
Find a good deal!
It is important for you to shop around to find the cheapest secured loan. You should not go for the first secured loan you see.
APR rates vary dramatically and therefore with a little research you could obtain a really good deal with a low rate of interest and no hidden extras. See our guide to the best secured loan deals.
Consider the source of your cheap secured loan. The online market place is an ideal place to shop for good deals and competitive rates of interest. However, don't rule out the larger high street lenders as they tailor their products to compete with internet competition for sales.
If you are going for a large secured loan, you should consider PPI if it is appropriate for you. If you get into problems with your repayments the payment protection plan will cover them.
Remember, PPI is not compulsory and you can usually pay less through a specialist broker than from a lender.
Applying for loans, mortgages and remortgages could not be easier: Burtplan Personal Finance have a no hassle promise and will help you take control of your
Personal Finances today!
Instant Decisions
When we receive your loan or mortgage application you will be contacted within 24 hours with a decision. Whether you take it is up to you.
No fees or charges
We will not charge you a penny as we work on commission from the lenders. So it costs you nothing - and we do the work.
No Obligation
You are under no obligation to take the offer. But with our interest rates we doubt you could refuse.
Apply online for secured homeowner loans, unsecured personal loans, mortgages, remortgages, commercial mortgages - solutions to your personal finance problems
