You've made the decision to get a secured loan, and now you might be wondering, "How long will it take for the funds to arrive in my bank account, and when can I start working towards my plans?"
It's a great question, and we have the answer. In this blog, we'll walk you through how long the process may take and share tips on how you may be able to speed it up.
How long does a secured loan take?
Generally, most of these loans will take up to 4 weeks to process. This timeframe is due to the extensive paperwork involved, as the loan is secured against your property.
However, if you are proactive, you may be able to speed things up. By submitting the necessary documents quickly and collaborating with your lender on any extra needs, your application could be finalised more quickly. In some cases, within 5 working days.
The timeline can also depend on the lender you are working with, as some may be able to process applications more quickly than others. This variation can influence the overall time it takes to complete.
While it may be important to get the funds quickly, it’s equally crucial to read through all the documentation carefully. So, avoid rushing your decisions to make sure this is the right move for you and aligns with your needs.
How can I speed up the process?
Get all your documents ready in advance
Lenders need specific documentation to progress your application, such as:
- Recent banking statements (typically from the last three months).
- Proof of identity, such as a passport or driver's licence.
- Verification of your current address.
- If self-employed, tax returns may be necessary.
As you can imagine, gathering and verifying this documentation can be time-intensive. To speed up the process, make sure you have these documents to hand when applying. By doing so, you can minimise delays and help the lender in processing your application more efficiently.
Address any mistakes or errors on your credit report
Before you apply for a secured loan, it's always a good idea to review your credit report and make sure it is accurate. The last thing you want is for your application to be declined due to mistakes on your credit report.
While lenders are often more relaxed about bad credit since the loan is secured against your property, it's important to make sure everything is correct. This will help you avoid potential issues. Additionally, lenders will usually want to understand anything currently on your report, so it's a good idea to refresh your memory so you're ready to provide the necessary explanations.
Be cooperative and truthful
Lenders are there to help you access the finance you need, so make sure you give them the information they need.
Always be upfront about any past problems you've had. The truth will come out eventually, as lenders thoroughly review all details of your application. So, it's much better to be honest from the start.
Remember, if you hide past mistakes it will only delay the process if the lender has to reassess your application.
What might slow down the process?
Problems with documentation
Missing documents or incorrect documentation can slow down the process. Lenders require these to verify your identity and make sure the financial information you have given is correct. If it's wrong or incomplete, they will be unable to do this.
Being slow to respond to questions
Lenders may need to ask you questions to help the process. If you are slow to respond, it can impact their ability to proceed with your application. Therefore, delayed responses can slow down the process.
Changes to plans
It's natural for plans to evolve over time. However, changes, such as needing to borrow more, can slow down the application process. Be mindful of this when making changes and consider how it may affect the progress of your application.
Summary
In summary, the process can range from anywhere up to 4 weeks. Being proactive, promptly returning documents, and collaborating with your lender may help speed up the process. Finally, understanding potential factors that could slow down the application process can help you steer clear of these common pitfalls.
Loans are secured against property. Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
