Secured Loan Guide
- Home Loan Process in Detail
A secured homeowner loan is a loan where the borrower is required to provide their property as security against the loan. If your property has an existing mortgage on it then the secured loan is also known as a second charge. Likewise, if there is no mortgage in place i.e. you own the property outright, then this is known as a first charge.
The first step is filling out our short and simple enquiry form here for a FREE quote!
More Info On Secured Loans
Homeowner secured loans can normally be used for a variety of reasons which common reasons being debt consolidation secured loans and home improvement secured loans. The secured loans we offer usually range for £10,000 up to £100,000 over a period of 3-25 years. If you are likely to pay off the loan early then it is recommended to look into early redemption fees.You will be required to pay interest on the loan too and this rate of interest is also known as the APR (or Annual Percentage Rate). The APR you are charged can vary quite a bit and will be largely dependent upon your circumstances and credit history. In some cases, a lender can offer a secured loan of up to 125% of the loan to value. Although it is recommended to shop around for the best rate bear in mind the the typical apr may not be the rate you are charged. It is best not to make numerous applications as this may lower your credit history. It is better to apply to a reputable secured loan broker who will do all of this work for you.
Although secured homeowner loans are usually for larger amounts, it is usally easier to obtain such finance compared to unsecured loans. To put it bluntly; you are offering your propert as security so if you fall to far behind with payments they can use this security to claw back their money. This however, is very much a last resort and if you feel you may be struggling with payments then discuss this with the lender. DON'T wait until it is too late! Due to the fact that your home can be offered as security, this means that many who may have been excluded from such finance such as the self employed or those with erratic incomes can now obtain a self cert loan where you can declare your own income.
Next Step
After you have submitted your details, the secured loan broker can usually make a quick assessment and determine the best way forward. Bear in mind, if the amount you wish to borrow is under £25,000 then this is known as a regulated loan and must come with a 7 day 'cooling-off' period where the broker is not allowed to contact you. However, you are free to contact them if you need clarification on any issue such as further explanation of the terms of the loan. Your broker will look into your current circumstances and take relevant factors into consideration to determine the best lender to go with. For example, do you have any CCJs, mortgage arrears or other outstanding secured finance? You will also need to send back a signed letter of authority signed by all of those involved such as your partner.The broker will then conduct a credit check using a credit reference agency such as Equifax. This is done to confirm your current status so that the broker can place you with the best lender for your circumstances.
Rates from 7.4% APR variable to 14.0% APR variable MOST customers pay 10.9% APR typical variable or less