Secured Loans
A secured loan, also known as a homeowner loan or second charge mortgage, is a type of borrowing where your home or investment property is used as security against the loan amount. This type of loan sits behind your existing first charge mortgage debt and allows you to release some of the available equity.
Why Opt for A Secured Loan?
Secured loans offer a way to borrow additional funds by using your property as security without affecting your existing mortgage. Secured loans are ideal for those locked into a product with early repayment charges, those wishing to retain a favourable mortgage rate with their current lender, or those who are unable to raise additional funds from their existing lender. These loans offer a long-term solution for financing major expenses like home improvements, debt consolidation, or purchasing a second home. Our team will guide you through the ins and outs of secured loans, ensuring you secure a deal that works for you.
Secured loans can be an effective financial tool for many purposes and offer several key advantages:
Higher Borrowing Amounts
Because the lender is securing a charge on a property, you can borrow more money than you could via an unsecured facility such as a personal loan or credit card.
Enhanced Affordability Checks
Secured loan providers tend to have more generous loan-to-income multiples than standard mortgage lenders. They can typically stretch your income, leading to higher loan amounts being available.
Longer Repayment Periods
Secured loans usually offer longer repayment terms than an unsecured loan, spreading the cost over time and potentially making repayments more manageable.
Debt Repayments
Secured loans are often used to consolidate existing debts into a single, more manageable loan.
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Frequently Asked Questions
In order to qualify for a secured loan, you must be over 18 years old, own your own home, and have a mortgage on it.
In general, secured loans are available for terms between 3 and 25 years, although some lenders offer longer periods for larger loans
Yes, it is possible to obtain a secured loan even if your credit isn’t perfect, however the rate and fees will likely be higher.
Timescales vary from lender to lender, however, the whole process can easily be completed in as little as 3-4 weeks.
The amount of the loan available will be determined by a number of factors, including income, credit score, outstanding first charge mortgage balance, existing unsecured debts, and monthly outgoings.
Ready to take the next step?
Our team of experts is ready to guide you through the entire mortgage process. If you have any questions about our services or would like to make an enquiry, please get in touch with us today for a no-obligation chat.