Best Secured Loans Against Your Property

  • Online For Rates from 3% APR
  • Getting an online quote will not impact your credit score
  • Poor credit & arrears accepted
  • Borrow long term over 1-40 years
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What is a secured loan?

Secured loans can be an effective way to borrow money, with the option to borrow a large sum secured against your property, vehicle or a valuable asset that you own. This valuable asset is typically in the form of property (e.g., a house or flat), and can help people borrow large sums of money for prolonged periods of time.

A secured loan can be a great option for those with a valuable asset in need of finance. They offer numerous different benefits, and can be used for a variety of purposes, including the following:

  • To fund a wedding
  • For home improvements
  • To consolidate your debts
  • Start a business
  • Supplement your retirement
  • Pay for a funeral
  • Pay for school fees
  • Help family get on the property ladder

The amount you’ll be able to borrow will depend on the value of your asset and your equity in it as well as other factors such as your income, credit score and affordability.

Representative Example: Based on borrowing £18,000 over 120 months. Interest Rate: 6.5% fixed for 60 months with instalments of £227.38. Followed by 60 months at the lenders standard variable rate of 4.95% with instalments of £221.71. Fees Broker fee (£1,530); Lender fee (£495). Total amount payable £26,945.40 comprised of; loan amount (£18,000); interest (£6,920.40); Broker fee and Lender fee. Overall cost of comparison 9.1% APRC.

What Types of Secured Loans Are Out There and What Are They Used For?

While secured loans all hold the same basic definition, there are a number of different types available to borrowers, some of the main ones including the following:

  • Homeowner loans – typically referred to as a second charge loan, many homeowners borrow money against their property. This is typically known as a second charge as it is the second priority that’s against your property after your mortgage (known as the ‘first charge’).
  • Bridging loans – used to ‘bridge’ the gap from the purchase to the sale of property. Bridging loans offer a short-term means of finance for borrowers to snap up time-sensitive deals.
  • Secured debt consolidation loans – enabling borrowers to put all of their existing financial debt (e.g., student debt, credit cards, loans) into one singular repayment schedule. This can help to simplify repayments.
  • Equity release – helps homeowners to release money tied up in their property. This type of secured loan is intended specifically for those over 55 who have been paying off their mortgage for a substantial length of time and have built up sizeable equity to take out.

As detailed above, there are a variety of different secured loan options out there for you to explore. As with any type of borrowing, it’s important to choose a secured loan that best fits your needs and personal circumstances, as this will help make it easier to manage the loan.

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Property Finance

Can I Get a Secured Loan With Bad Credit?

Yes, you can get a secured loan even if you have a bad credit rating. In fact, secured loans are popular with those who have a poor credit history, due to the fact there is added security with the valuable asset being used as collateral on the loan.

Therefore, if you have an adverse credit rating you may still be eligible for this type of loan – provided you have a valuable asset to secure onto the loan.

It’s important to note that while you can get a secured loan with bad credit, you must ensure that you can afford repayments on this loan, as failure to pay back this loan can lead to repossession of your valuable asset – which in many cases is the borrower’s home.

What Information Will I Need to Provide When Applying for a Secured Loan?

There are a number of different things you’ll need to provide when applying for a secured loan, including the following:

  • The estimated value of the property you’re securing the loan against.
  • The estimated equity you have in the property you’re securing the loan against.
  • Your monthly income.
  • Your contact details (e.g., email address and phone number).
  • How much you want to borrow.
  • How long you want to borrow for.
  • How much you owe in any outstanding debts.

As with any type of loan, you’ll also have to meet certain eligibility criteria. This criteria will vary depending on the loan type you go for.

What is the Eligibility Criteria for a Secured Loan?

The eligibility criteria for a secured loan varies depending on the type of loan borrowers opt for. For example, those wanting to take out a homeowner loan will usually have to be over 24 years old, own a property, have a good credit history and earn over a certain amount per year.

Similarly, those wanting to take out equity release will have another set of criteria to meet, including age restrictions (must be over 55 years old), and equity requirements (must own most, if not all, of the property outright).

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FAQs

What Types of Properties Can I Get a Secured Loan Against?

  • secured loans for residential property such as homes and flats
  • secured loans for commercial property such as offices
  • bungalows
  • care homes
  • chalets
  • converted barns
  • cottages
  • detached homes
  • farmhouses
  • guest houses
  • hotel
  • maisonettes
  • petrol garages
  • studio flats
  • terraces
  • townhouses
  • warehouses

What LTVs Are Available for Secured Loans?

You can find lenders offering the following LTV secured loans:

  • 50% LTV
  • 60% LTV
  • 70% LTV
  • 80% LTV
  • 90% LTV
  • 100% LTV

What Are the Risks That Come With Secured Loans?

One of the biggest risks that come with secured loans is the fact that the borrower’s valuable asset is used as collateral should they fail to keep up with repayments. In a lot of cases, this valuable asset is the borrower’s home, meaning if they fail to pay back the loan they risk losing their home.

However, repossession is typically a last resort, and if you are struggling to pay back the loan the lender will usually work with you to help figure out a more manageable way for you to repay.