Secured Loans

Secured loans can offer a more flexible approach to credit problems.

  • Clear your Credit Cards Debts
  • Reduce your monthly outgoings
  • Organise your Debts

Secured loans enable people to borrow capital from £7,500 upwards over a long period of time (up to 25 years).

It is not necessary for you to own your home or property outright to secure the loan, although you must have sufficient equity in the property to cover the amount borrowed.

It is possible to have more than one loan or mortgage secured on your property. However you must inform all of the existing lenders of any additional loans taken out against the property in question.

Secured Loan Tips:-

  • Never borrow more than you can afford to pay back each month.

  • Never apply for more than one loan at a time.

  • If you can afford to pay back a loan over a short period do so. You’ll pay far less interest.

  • Always check the small print of any agreement for additional charges, such as a penalty fee for early repayment of the loan.

  • If you fall ill or lose your job you’ll still need to repay your loan, so consider taking out loan insurance to cover your payments.

  • If you’ve problems repaying a loan always contact your lender as soon as possible. If you’re up front about problems they’re more likely to be sympathetic and helpful.

  • Please remember if you default on payments for an unsecured loan you could end up being credit blacklisted, which could affect your application for a mortgage or credit card in the future.

  • Have your credit report in hand and go over the report with the prospective lender while making sure to accentuate the positives.

  • Be honest with the loan adviser, but spare them your bad luck story.

  • Your home may need to be valued before the advance can be agreed. We therefore advise you to plan in advance.

When deciding between a secured loan and unsecured loans it is worth while speaking to a FSA Regulated Independent Financial Adviser / Loan Provider for sound impartial advice, and remember penalties for non-repayment will be incurred, so never over stretch yourself.

Using Secured Loans

Secured loans are very versatile financial product and subsequently lend themselves to a myriad (large number of) uses:-

Home Improvement Loans

Home improvement loans are another of the most common uses for secured loans, whether redecorating to re-coupe the value before the sale of the property or to simply making the home a nicer place to be; many people turn to home improvement loans companies in the UK.

These loans are often called Homeowner loans as they are secured on the equity of a home the borrower owns.

Secured Loan Deals

Financial Advisers (Loan Advisers) will always give one vital piece of advice when you are investigating your borrowing options; shop around.

By shopping around, you gain a greater understanding of the loan market and loan solutions on offer. Equally by informing the relevant loan companies that you are going to shop around, they are forced into giving every conceivable reduction or offer to beat the best loan quote you receive.

Secured loans like all other loans, will carry additional charges like an Annual Percentage Rate (APR) arrangement fees and possibly even a loan broker fee. The point is; before entering into any loans agreement, please make sure you know and understand all the facts.

Advantages - Secured Loans:-

  • Secured loan deals are offered against, a security which covers the lenders risk factors. Subsequently enabling the loan lender to offer a slightly lower interest rate.

  • Repayments terms and conditions are flexible, thereby adding to its market appeal.

  • Availability of secured loans has made them very popular with home owners and there is a greater choice for new secured loan applicants.

  • As the loan is secured on an asset; secured loans are often easier to attain for those with bad credit (poor credit)

  • It is really up to the borrower to see if this loan type is feasible or not.

Secured Loans or Unsecured Loans

Secured loans typically carry a lower level of interest as the lenders capital is secured against the borrower’s asset(s) and are equally easier to obtain; especially when seeking larger sums of money or for those with poor credit histories.

However if you do not wish to provide security for a loan, then an unsecured loan is one alternative; obviously this is a slightly more risky proposition for the lender and they will subsequently stipulate a higher level of interest.

What ever your decision, please do feel free to browse the remortgage market website and digest all of the information that you can find, but when making the final decision you are strongly advised to seek the advice of a FSA Regulated Independent Financial Adviser.

Debt Consolidation Loans

One of the most common uses in today’s loan market is the Debt Consolidation loan. As you are probably aware and regularly hear, the UK is experiencing an all time high for borrowing and it doesn’t seem to be slowing down. In times where borrowers have accumulated several loans from varying loan providers, the consolidation of these loans is an appealing proposal and one that often makes allot of sense.

Such a loan enables you consolidate all of your current debts into one single manageable loan, a single creditor instead of several creditors can be an advantage. Therefore enabling the user of a debt consolidation loan, to often benefit from smaller monthly loan payments over a slightly longer period of time. Now you must remember that debt consolidation loans are not the solution to everyone’s problems and we strongly advise that you seek the advice of an Independent FSA Regulated Financial Adviser.

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