Secured Loans

A secured loan will enable you to borrow money at a competitive interest rate when it is secured against your home. Sometimes it is referred to as a second charge mortgage as your mortgage takes priority over the loan if you were to default on your payments.

What can I use a secured loan for?

You can use a secured loan for when you need borrow a large amount. For example, to buy a new car, carry out home improvements such as an extension or loft conversion, or even for a wedding.

How much can I borrow?

It will vary by lender and will be based on your property value and the amount that you have mortgaged. Also, the lenders take into account your day to day financial situation. We’ll need to assess your affordability based on your income and outgoings. How much do you have going out each month, do you have any other debts etc. Your credit score will also be checked.

How long is the loan for?

This can be tailored to your needs but typically they are repaid over 2 – 25 years. Our friendly and experienced loan team will discuss this with you and calculate the optimum length of time and repayment level for you.

What are the risks?

You need to be sure that you can afford the monthly repayments. This type of loan is secured against your home so if you default your home will be at risk.  Weigh up the risk vs. the reason you want to borrow the money.

What the difference between a secured loan and an unsecured loan?

With a secured loan your home is collateral for the lender so typically you can borrow a larger sum of money with this type of loan. See here for further information on unsecured loans.