What is a secured loan?
It is a form of borrowing, which uses a property you own as 'security' or 'collateral'.
Securing a loan against your property gives lenders reassurance that it will be repaid. This can make them feel more comfortable about approving your application, even if you are a higher risk.
With this option, lenders may also offer you a larger amount of money and be able to get you a better interest rate than some other finance solutions.
However, remember that your home may be at risk if you do not make repayments. So, always make sure you can comfortably afford it before you agree.
With over 600 products available, offering terms from 3 to 30 years, it is possible we have a solution that meets your needs.
What can a secured loan be used for?
You can use them for any legal purpose you choose. Some people use it to consolidate debts, fund home improvements, or finance major life plans like a deposit for a second home, extensive education costs, or a dream wedding.
If you're considering consolidating existing borrowing, it's important to note that this may extend the terms of the debt and increase the overall amount you'll repay.
Our team of qualified advisors are experienced in finding secured loans for customers just like you. We always aim to find you a suitable and affordable product, which gives you the freedom to start your plans whatever they may be.
Is a secured loan right for me?
It depends on your circumstances. They can be a great choice for many people. In particular, if you wish to borrow a larger amount of money, or repay over a longer repayment period, they may be ideal.
This form of funding proves especially effective in certain situations, such as:
When you have complex circumstances or have been declined for other types of finance –Unsecured loan providers are less inclined to lend money to people who are a higher risk. In such cases, opting for a secured loan might increase your chances of approval, as lenders tend to be more flexible.
You have high remortgage rates or will incur fees – If you considered remortgaging your property for extra funds but face high interest rates or early repayment charges, you might want to explore secured loans as an alternative.
However, it is important to consider the risks. Taking out a loan against your property can put your home at risk if you can't repay. Therefore, you must always think carefully about if it is the right option for you.
As a UK based broker, our team is always on hand to talk through your options if you are unsure.
How do you apply for secured loans?
Applying is simple. Either you can apply online or by phone, whichever you prefer. Here is an overview of our application process:
- Before you apply, you need to consider how much you can afford to borrow and over what term.
- Next you will need to call a member of our experienced team to talk through your requirements. Or you can enter your details in our online form above and we will call you.
- Our advisors will try to find you a suitable and affordable solution from our range of products. If we find you a loan, one of our friendly professionals will contact you to discuss the details.
The final say is yours. If you are happy, you can choose to proceed and get your funds.
Always make sure you have bank statements, photo ID and proof of your address ready to help the process run smoothly and quickly.
How much can I borrow with a secured loan?
Using your home as security may let you borrow larger amounts of money. The exact amount you can borrow will depend on how much you can comfortably afford, your credit profile and how much equity is in your property.
We have products with loan sizes ranging from £20,000 up to £1 million. So, there are a number of different options open to you. When you apply, we will compare all our options to try and find you the most suitable and best secured loan we have available.
What are the borrowing terms on secured loans?
Repayment terms vary greatly. We have both long and short repayment periods available.
Borrowing over a longer period may reduce your monthly repayments and make it more affordable. However, you may pay more interest in total.
Shorter repayment periods often mean you repay less interest in total, but the monthly payments may be higher. It is essential to make sure you can comfortably afford the monthly repayments, as your home may be at risk if you fail to repay.
We have options available with terms ranging from 3 to 30 years, so you can find a solution that is manageable and affordable for you.
Before you make your secured loan application, it is vital you consider whether a shorter or longer term would be good for you.
How does a secured loan work?
Secured loans use your home, or another property you own, as “security” against the money you borrow. This is also often known as "collateral".
It operates as a second line of borrowing that runs alongside your first mortgage, meaning it does not alter your current terms.
Most loans work in a similar way, where you pay back a certain amount every month, in addition to any interest you have incurred.
Essentially, you agree with your lender on a term and the repayments are spread out over that period. Every month you will have a set amount to repay, as well as interest, until the term is finished and the balance has been repaid in full.
If you are in a position where you can repay earlier, then you can do this. However, some providers may impose early repayment charges. Before you sign the offer, it's worth making sure you understand these charges.
The overall amount you pay back depends on the interest rate you are charged. Similar to other mortgages, the interest rate you get may be fixed or variable. With a fixed rate, your repayments remain constant for a certain period. On the other hand, a variable rate can rise or fall and may be influenced by the Bank of England base rate.
As a UK based broker, we have access to a wide range of different lenders. This means we have a variety of secured loan rates available, including both fixed and variable options.
What are the differences between a secured and unsecured loan?
The main difference is that one takes an asset you own as security, whereas the other does not.
With an unsecured loan, an asset is not used as security (collateral). This means that if you fail to make payments, your lender is not able to repossess an item to recover their costs. Due to this, the risks are higher for lenders. To reduce these risks, they may charge higher interest rates and have stricter qualifying criteria. Therefore, if you have complex circumstances, you may find it difficult to get accepted. If you want to get approved, you may need to take some steps (such as improving your credit score) to be successful.
In comparison, a secured loan takes an asset (usually a property) you own as security. If you consistently default on your repayments, your lender may repossess the asset. However, this is usually a final resort after other options are explored first. With this solution, lenders are often more relaxed, which means they may have a higher acceptance rate.
Learn more about the differences in our blog "Secured vs unsecured borrowing".
How do I enquire?
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 enquiry form online or call us to speak directly to one of our advisors.
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Step 2: Speak to the team
After reviewing your enquiry, one of our experts will call you to discuss your situation.
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Step 3: We'll handle the rest
If we find you a product that fits your needs and you're happy, we'll take care of the rest for you.
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Step 4: Completion
Once all of the paperwork is completed, you will receive your funds.
