What is a secured loan?
A secured loan allows you to borrow money by using a property you own as 'security' or 'collateral.'
By securing the loan against your property, lenders may feel more confident about repayment, making it easier for you to get approved.
However, it’s crucial to remember that your home is at risk if you don’t keep up with repayments. Always make sure the payments are affordable and fit comfortably into your budget before deciding.
With nearly 40 years of experience in this sector, we may be able to find the right solution for you. Ready to explore your options? Fill out the form above or give us a call today to see how we can help.
Is a secured loan right for me?
This option could work for many people, but whether it's right for you depends on your needs. Here are some situations where it might make sense:
- If you’ve been turned down for a loan elsewhere: If your situation is complicated and you've been declined for other loans, this might be easier to get. Secured loan lenders are often more flexible and willing to help, even if you're seen as a higher risk.
- If remortgaging isn't the right choice: If you're thinking about remortgaging but are worried about high rates or early repayment charges, this could be a good alternative.
- If you're having trouble getting the amount or term you need: If you're struggling to borrow the right amount or find a loan with the right repayment terms, this option could work better. Lenders are often more flexible and may allow for larger amounts or longer terms.
If you’re unsure, our UK-based team is here to help. We’re happy to talk through your options and see if we have a solution for you.
What can a secured loan be used for?
You can use them for almost any purpose (as long as it’s legal)! Here are some common situations where this option can help.
- Debt consolidation: Struggling to juggle multiple repayments? This option can help you combine your debts into one manageable payment, simplifying your finances. However, keep in mind that consolidating debt may extend your repayment term and increase the total amount you repay.
- Funding home improvements: Want to add value to your home with renovations but finding it hard to get approved elsewhere? This could provide the support you need.
- Covering the costs of a dream wedding: Planning your big day but need help covering the costs? A secured wedding loan might be able to make your dream day a reality.
- Education costs: Facing high education expenses? This option could cover those costs, allowing you to focus on your studies.
Our team of qualified advisors have plenty of experience helping people, like you, find loans that fit their needs. So, we may be able to help you find a suitable option to start your plans!
How to apply for a secured loan
Applying is simple, and you can choose to start the process online or by phone, whichever works best for you! Here’s a simple overview of how our process works:
- Think about what you need: Before applying, take some time to consider how much you’d like to borrow and over what term.
- Get in touch: You can either call one of our friendly team members to discuss your needs or fill in the online secured loans enquiry form above, and we’ll give you a call.
- We’ll try to find a solution: Our experienced advisors will work with you to try and find a suitable option from our range of products.
- Make your decision: If we find a loan that works for you, one of our team will get in touch to go over the details. The final decision is entirely up to you, if you're happy, you can proceed and get your funds.
To help the process run smoothly, make sure you have your bank statements, photo ID, and proof of address ready. Find out what else might be needed in our blog 'what documents do I need for a secured loan'.
How much can I borrow with a secured loan?
Using your home as security may give you the opportunity to borrow larger amounts of money. How much you can borrow depends on what you can comfortably afford, your credit profile, and the equity in your property.
We have a wide range of loan options, from £20,000 all the way up to £1 million. So, whatever your plans are, we may have a solution that works for you.
When you apply, we’ll compare all available options to try and find the most suitable solution we have for your situation.
What are the borrowing terms on secured loans?
Secured loan terms can vary, with both short and long repayment periods available to suit your needs.
If you choose a longer term, your monthly repayments will likely be lower, making it more affordable day-to-day. However, keep in mind that you may end up paying more interest overall.
On the other hand, shorter repayment periods usually mean less interest in total, but your monthly payments will be higher. It's important to ensure that the repayments are something you can comfortably manage, as your home could be at risk if you're unable to keep up with payments.
With options ranging from 3 to 30 years, we may be able to help you find a solution that fits your budget. Before you make your secured loan application, take some time to think about whether a shorter or longer term would be the best fit for you.
How does a secured loan work?
This solution uses your home, or another property you own, as "security" for the money you borrow. It works alongside your first mortgage, so it won’t change your existing terms.
Like most loans, you’ll make monthly repayments, which include both the loan amount and interest. You and the lender will agree on a term, and your repayments will be spread out over that period. Each month, you'll pay a set amount, until the loan is fully paid off.
If you’re able to repay early, you can do so, though some lenders may have early repayment charges. So, be sure to check for these charges before you sign anything.
The total amount you pay back depends on the interest rate you’re charged. Just like with other loans, the rate may be either fixed or variable. With a fixed rate, your repayments stay the same for a set period. However, a variable rate can change, depending on things like the Bank of England base rate.
We work with a wide range of lenders, meaning we can offer a variety of secured loan rates to suit your needs.
What are the differences between a secured and unsecured loan?
With an unsecured loan, no asset is used as security. If you miss payments, the lender can’t take your property from you to recover the costs. Because of this, they tend to come with higher risks for lenders. To cover that, they often charge higher interest rates and have stricter approval requirements. If you have complex circumstances, it might be harder to get approved, but working on things like improving your credit score can help.
A secured loan, on the other hand, uses an asset (usually your home) as security. If you don’t keep up with repayments, the lender could repossess the asset, but they would usually try other options before taking that step. Because of the added security for the lender, they are often more flexible and may have a higher approval rate.
How do I apply?
We want to make the process of applying as smooth as possible. Here are the main steps involved in our application process.
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Step 1: Submit an enquiry
Fill out our simple online enquiry form or give us a call to chat with one of our friendly advisors.
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Step 2: Speak to the team
After reviewing your enquiry, one of our experts will give you a call to discuss your situation and answer any questions.
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Step 3: We'll handle the rest
If we find a solution that works for you and you're happy with it, we’ll take care of everything else.
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Step 4: Completion
Once the paperwork is sorted, you'll receive your funds.
