Secured Loans, Homeowner Loans
A Guide to Secured
Loans
A secured loan is any loan that requires
the borrower to provide the lender with some form of security.
In the case of secured loans, the security will be the borrower's
property, regardless of whether it is mortgaged or owned outright.
Loans secured against property that is already mortgaged are
known as second charges, whereas loans secured against a property
owned outright with no existing mortgage in place are known
as first charges. See below for a quick guide to secured loans.
Please
complete our short online secured loan
application form so that one of our advisors can contact
you. There is no obligation to buy so contact
us and you will be contacted by a qualified financial
advisor.
For mortgages and
remortgages please click here.
STEP 1 - WHICH LOAN?
Secured home-owner loans are available in varying amounts
and for many different purposes, including debt consolidation.
The amount available usually ranges from £3,000 to £50,000,
although some lenders will consider lending up to £100,000.
The amount borrowed is repaid monthly over a term agreed at
the outset, which will usually range between three years and
twenty five years. You may be charged a penalty if you repay
your loan earlier than agreed, and you should check each lender's
individual policy with regards to this.
Lenders charge interest on the amount of your homeowner loan,
which is referred to as the Annual Percentage Rate (A.P.R).
The amount of your loan, the term available and the A.P.R
will all depend upon the equity you have in your property,
the lender's view of your ability to repay the secured loan
and your personal circumstances, for example any adverse credit.
Subject to your circumstances, you may be able to borrow up
to 125% of the property value. The A.P.Rs quoted by the lender
will usually be typical rates, and these act as a guide only
as the exact rate offered will be on an individual basis.
As a general rule, it is advisable to compare the A.P.Rs of
different loans, as this is a good way to determine how competitive
they are.
Generally, secured loans are much easier to obtain than unsecured
loans. This is because the lender has the added benefit of
security, which provides protection in the event of a customer's
inability to repay. This also means that persons who are self-employed,
have recently changed jobs or who have adverse credit can
take out a loan. They are also useful for larger amounts or
where the applicant requires a longer repayment period.
STEP 2 - HOW DO I APPLY? Please complete our short
online secured loan application form
so that one of our advisors can contact you. There is no obligation
to buy so contact us and you will
be contacted by a qualified financial advisor.
Lenders frequently use credit scoring facilities and credit
reference agencies to assess your suitability. Credit scoring
assesses your personal circumstances and statistics to determine
which broad category of borrower you fit in to. Credit reference
agencies provide a detailed analysis of your financial position
as they hold information relating to your credit history,
any adverse credit and any existing commitments. They also
provide address and electoral roll information. If you are
refused a loan or wish to make enquiries concerning your own
credit file you can apply to the credit reference agencies
for a copy of your credit file. This service is subject to
a small fee.
Please complete
our short online secured loan application
form so that one of our advisors can contact you. There
is no obligation to buy so contact us
and you will be contacted by a qualified financial advisor.
For mortgages and remortgages please
click here
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