Take our Free 30-Second Assessment & Find Out if you can Consolidate Debt with a Secured Loan

Everyone’s situation is unique. Secured loans are a convenient and cost-effective way of raising additional funds but are not always the best option. To ensure that you’re raising funds in the most cost-effective way, our expert advisers will also review your mortgage options and even the possibility of raising a further advance from your current lender.

You may qualify for a secured loan if you currently own a property, have an income from employment or self employment and have some equity in your property.

For a secured loan against your main home, you can expect to be able to release up to 85% of the value of your property, subject to your income. If you’re using a secured loan to release cash from a buy to let, or investment property, you can expect to be able to release up to 80% of the property value.

A secured loan will not affect the loan to value of your main mortgage, unless you choose to borrow the extra money when you remortgage to pay off your secured loan – which can often be a good option.

It depends! We would normally expect the secured loan application to be approved within a 3 to 5 week period⁽⁴⁾ and then you may need to allow a further week to complete and receive the funds. Some lenders are faster than others… If speed is a key concern for you, let your adviser know and they’ll be able to recommend certain providers to assist with a faster turnaround.

There are a number of lenders that will consider clients who have faced difficulty paying in the past. Your expert advisor will examine these providers according to your situation.

Personal ‘unsecured’ loans and secured loans are completely different forms of borrowing. With a secured loan the debt is linked to your asset (usually the home). A personal loan, also known as an unsecured loan, is not protected by collateral, therefore if you are late with payments or default, your lender cannot automatically take your property, but can go through other methods to reclaim the debt, such as going through the courts. You don’t need to be a homeowner to be eligible for a personal unsecured loan, but you do need to have a fair credit score. You borrow from a lender or bank and agree to make regular payments until the debt is paid off. As the loan is unsecured, the interest rates tend to be higher than with a secured loan, and you may incur extra charges or fees if you miss payments. This can negatively affect your credit rating, making it more difficult to successfully apply for an unsecured loan in the future. The two main types of unsecured loans are opening a line of credit, such as credit cards or store cards, and fixed-interest installment loans such as personal loans, student loans, etc.

These loans can be used for any number of reasons which require a large sum of money. The most common reasons are for funding home improvements (e.g. new kitchen or bathroom, a conservatory, extension, replacement windows and doors, garden landscaping, etc) or paying off expensive debts (credit cards, store cards, personal loans, overdrafts, car finance, etc). But secured loans can be used for a variety of other purposes so if you let your advisor know, they’ll be able to tell you very quickly what’s possible.