Secured Loans are loans which are secured on an asset. In the UK, this is typically an applicant’s residential property, however, we can source secured loan finance for any reasonable purpose such as:
- Debt Consolidation
- Home Improvements
- Major Purchases
- Property Investment
Why you should choose a Secured Loan?
Traditionally, there have been three main ways for you to raise extra cash – Remortgages, Further Advances and Unsecured Loans. However, there are many reasons why these 3 options may not be suitable.
With a Re-mortgage – You may be tied to a fixed / discounted rate and may not want to give up a low rate or face high redemption penalties; possible valuation; broker and legal fees; purpose of loan may be unacceptable; can take months to complete; you may be currently in arrears, in this case you could only remortgage with a sub-prime lender at a higher rate.
Unsecured Loan – Normally restricted to a shorter term (1 – 5yrs) which can mean a high monthly repayment; all applications credit scored which often results in many declines; advances normally restricted to £15k but in cases of adverse credit this can usually be far less.
Further Advance – Lender may seek to increase current lending rate; purpose of loan may be unacceptable; you may be in arrears with your current lender or restricted by current lending criteria.
The benefits of a Secured Loan
- Most legal purposes accepted as the purpose of the loan
- Arrears considered on many plans
- First mortgage can be left in unaffected
- Quicker Completion time
- Secured Loan could be arranged to enable the borrower to keep an existing mortgage rate
- You can borrow between 5-30 yrs
- More flexible criteria
- Advances from £10,000 – NO UPPER LIMIT (on referral)
- Low ERC’s – 0 to 2 months generally
- Broker fees / lender fees can be added to the loan