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A secured loan is a loan in which the
borrower pledges some asset (e.g. a car or
property) as collateral for the loan, which
then becomes a secured debt owed to the
creditor who gives the loan. The debt is
thus secured against the collateral — in the
event that the borrower defaults, the
creditor takes possession of the asset used
as collateral and may sell it to satisfy the
debt by regaining the amount originally lent
to the borrower.
For more help on Secured Loan frequently asked
questions click here. There are two purposes for a loan secured
by debt. In the first purpose, by extending
the loan through securing the debt, the
creditor is relieved of most of the
financial risks involved because it allows
the creditor to take the property in the
event that the debt is not properly repaid.
In exchange, this permits the second purpose
where the debtors may receive loans on more
favourable terms than that available for
unsecured debt, or to be extended credit
under circumstances when credit under terms
of unsecured debt would not be extended at
all. The creditor may offer a loan with
attractive interest rates and repayment
periods for the secured debt. A mortgage
is secured loan. Technically it is called
the first mortgage and it is the primary
lien or has first claim against a property.
A homeowner who has a mortgage and then
takes out a loan against the equity in
his/her property is also taking a secured
loan, however this is second charge ( also
known as subsequent charge) against the
property. If a homeowner owns their property
outright and wishes to take out a secured
loan then they would need to apply for a
first charge loan or essentially seek a new
mortgage on their property.
We offer the following second charge
secured loans
If you want to
find out more about
your current credit
status click here or using are "Credit
Status" icon above. Remember - We will try to help you find the
financial solution for your current
circumstances. It costs nothing to enquire,
you are under no obligation, it only takes a
minute and you get a quick "in principle"
decision.
If you would would like alternative
secured loan providers then click here to
open a new window to our "secured
loan partners" or visit our complete
list of "finance
partners" Secured Loans
Frequently Asked Questions
- What is the difference between a
secured loan and an unsecured loan?
A secured a loan in which the borrower
pledges some asset (e.g. a car or
property) as collateral for the loan,
which then becomes a secured debt owed
to the creditor who gives the loan. The
debt is thus secured against the
collateral You can borrow a much
larger sum than if the loan is
unsecured, and repay over a much longer
time span - often up to 25 years
|
Property Owner |
Yes with mortgage |
Doesn't matter |
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Min / Max Loan Value: |
£5k - £ 1 |
£100 - £25k |
|
Max Repayment period: |
25 years |
7 years |
|
Approx Time |
3 weeks 2 |
1-2 weeks (if you qualify) |
|
Other: |
Must have "free equity"
3 |
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- Depends on your
credit rating & the
amount of "free equity"
in your property
- Possible faster for
loans over £25k
- The difference
between estimated
property value and
mortgage balance must be
greater than the value
of the amount you wish
to borrow
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- If I am not a homeowner can I get
a secured loans?
No, a secured loan can only be arranged
using your property as collateral.
However, if you're not a homeowner, you
can apply for an unsecured loan at a
competitive rate. Click here to see how
much you could borrow and what your
repayments might be. If you want
to consider an unsecured loan then use
the following links: Tenant
Loans (from £100 - £15,000) or
Homeowner Loans (from £100 - £25,000)
- If I have a bad credit history,
can I still get a secured loan?
As long as you are a homeowner and the
value of your property is greater than
your mortgage (you have equity in other
words), a bad credit history won't
necessarily exclude you from getting a
secured loan. Because the lender has
security, mortgage arrears, County Court
Judgements (CCJs), payment defaults and
other problems, such as no proof of
income, are often less of an issue with
a secured loan. You will typically pay a
higher APR when you have a poor or
adverse credit rating.
- I have seen many finance terms that
I don't understand, can you help?
We suggest you visit our
glossary of
terms for more help.
- Why are your forms so short?
We try to request the bear minimum of
information. We could ask for all the
information online however we still be
required to go through all the detailed
questions with you either over the phone
or in person.
- What happen after I fill in the
online enquiry?
You will be contacted by telephone so we
can collect the additional information
required, so a team of professionals can
assess your individual requirements and
circumstances and look for the best
secured loan for you amongst a panel of
lenders. We'll do everything we can to
make sure the process runs smoothly and
you get the money as quickly and
efficiently as possible.
Think carefully before
securing other debts against your home. Your
home may be repossessed if you do not keep
up repayments on your mortgage. If you would would like alternative
secured loan providers then click here to
open a new window to our "secured
loan partners" or visit our complete
list of "finance
partners" |
