FAQs: Frequently Asked Questions
A secured loan is a means of borrowing money that is backed by something you own, like a property or car. If you don't pay back the loan on time, then the lender can take the item used as security in lieu of the loan.
The principle behind a secured loan is that lenders want to make sure that people are going to repay the loan on time, so by offering collateral against a loan, a lender will have more confidence in the borrower.
We offer mortgages of up to £250,000. Our minimum mortgage is £10,000, but if you require less we can, with your permission, refer you to one of our referral partners who may be able to help.
The average turn around we work towards is 2-3 weeks but we can complete much quicker, it all depends on what is needed and how fast you can send back the required documents..
To apply for a mortgage you must be a UK homeowner. We do not accept tenants. If you jointly own the home you must apply with the other person.
We lend up to 80% of your house value (minus 1st mortgage if applicable).
Secured loans make it easier for people with lower credit scores to borrow money. Loan providers are more likely to lend money to someone with bad credit if they put up a security, since they will have something in return if you don't pay them back.
If you have bad credit you may have to pay a higher interest rate, but this will depend on your situation. If you do have credit issues, you should always think whether getting into more debt is the best thing to do.
Always start by making certain you can afford your monthly repayments. If you don’t make your payments regularly and on time, you risk damaging your credit score and losing your home. Setting up a direct debit can be the best option for many people and always make sure that you stick to your budget and do not overspend.
Getting a secured loan over remortgaging may be considered a better decision under these circumstances:
- If your financial situation has changed
- If you need funds quickly
- If you’re facing ERCs (early repayment charges) for remortgaging
- If your credit score has declined
- If your mortgage lender won’t allow additional borrowing
- If you have a preferential rate on your first charge mortgage
You can find out more on this topic from our 'What is the difference between secured loans and remortgaging?' blogpost article.
Yes, secured loans are generally easier to access than unsecured loans, particularly for people with lower credit scores, on lower incomes, or those who are self-employed to borrow money.
Secured loans usually carry lower interest rates than unsecured loans, but the lender will require collateral, such as your home. This means you must make certain that you can repay the loan.
Loan providers are more likely to lend money to someone with bad credit if they put up a security, since they will have something in return if you don't pay them back.
Before taking out a secured loan, it's also important to be aware of any risks. Loans secured on houses have the same risk as other loans, including negative marks on your credit history if you fail to repay the loan, and additional charges for missed payments.
In addition, there is also the risk of losing your home if you cannot afford to repay your debt. This means that it is very important to consider these risks, and make certain that you can afford to repay the loan before you commit to it.
We will help you consider all the options we have available, and will always keep your best interests at heart before making any recommendations to you.
If you don't pay back a secured loan, there is a chance that your property may be repossessed as collateral to satisfy the debt. If you are experiencing financial difficulties, a good lender should do what they can to help you rather than repossess your home.
Options such as managed repayment plans, or repayment holidays may be available to you. We will always do whatever we can to help you, and would only ever repossess a property as a last resort. But it is important to know that late payments may incur additional fees, and failure to repay your loan may also be recorded on your credit history.
It depends. The length of time it takes to repay a loan will depend on how long you take the loan over, and whether you miss any scheduled repayments. Loans can typically be taken out over 3 to 30 years.
Generally, the longer you take the loan over, the lower your monthly repayments will be, however you will repay more interest overall. If you take a loan over a shorter period, your monthly costs will be higher, but the total cost will be lower because you will pay less interest.
If you would like to apply for a mortgage then simply use our online form or call us direct on 0800 980 6273.