Secured loans

A secured loan could well be a suitable option for you if you are looking to borrow a large sum of money and you have equity in your home or you can offset the loan against other assets.

The calculations on what a lender will allow you to borrow, over what term and at what interest rate will depend on factors such as the equity you have in your property or asset, your credit history and your personal circumstances.

Typically secured loans are lent between five to 25 year terms and usually the sum borrowed is over £15,000, but these figures will vary depending on the lender. Our panel of regulated and experienced advisers will guide you through all the available options and find the most suitable product for you.

The main idea with a secured loan is that offsetting the amount borrowed against an asset, such as equity in a property, allows for larger sums to be loaned at low interest rates, normally over a lengthy period.

There are three main types of secured loan, namely, short-term fixed rate loans, fixed for term loans and variable rate loans.

With short-term fixed rate loans the lending period is typically between a year and five years, with a fixed amount being paid every month throughout the short term, before repayments then revert to the lender’s variable rate. So after the initial fixed rate short term, payments can go up or down.

Meanwhile with fixed for term deals a set amount is paid every month throughout the entire term of the deal. Repayments do not fluctuate, allowing for accurate and affordable budget planning over the full term.

With variable rate loans the interest paid depends on the Bank of England base rate or specific market forces. Therefore monthly repayments may increase or decrease.

Our loans advisors will find the right product for you, guiding you through the application process in an efficient and transparent manner.

In most cases applicants must have been UK residents for at least three years, have a current account with a UK bank and proof of regular income. Many applicants utilise secured loans for re-organising their debt or for funding home improvements, though lenders can be flexible about lending purposes.

Working with our team of qualified and experienced brokers we’ll give you an idea which type of product you’re most likely to qualify for, giving you a clear understanding of the rates available without impacting on your credit files.

By borrowing against the value of your property, for example, you might be able to add to the overall value of your home by improving or extending it.

Or you might use a secured loan to consolidate your finances, reducing the cost of existing debts or smaller loans by repaying them with a lower cost larger loan.

For any advice required on how to get the best possible deal on a secured loan, contact us today and our team will provide you with the most suitable solution.