UK SECURED LOANS
At some point most homeowners find that they need to raise capital, it could be for home improvements, to consolidate some existing debts or to raise money for a dream holiday or a special purchase. Quite often moving your mortgage or borrowing additional money from your existing mortgage provider is not an option; that’s where a secured loan can really help.
A secured loan is simply a loan that is secured against the equity in your property. Because you are providing security to the lender in the form of bricks & mortar, the rates tend to be lower than a traditional unsecured loan, with terms as long as 25 years.
Finance Now guarantee a fast turnaround of your application with no up front fees – so if you need your money fast, contact our secured loan specialists now!
How do secured loans work?
Homeowner secured loans are often called second charge loans or second charge lending. Whenever credit is secured on a property, a charge is registered at the Land Registry. Your mortgage lender will have the first charge on your property; the secured loan will have the second charge on your property.
Because a secured loan sits along side your mortgage, there is no need to pay off or redeem your current mortgage; avoiding any redemption penalties your mortgage lender may charge.
Even if you have just purchased your council property on a right to buy basis, you may be able to take out a secured loan as soon a 6 months after the purchase has completed.
Secured homeowner loans can be used for any purpose and are available to virtually anyone who has some equity in their property, with common reasons for taking out a secured loan for home improvements, debt consolidation or a special purchase. You can calculate how much equity you have in your property by simply subtracting your current mortgage balance from the value of your property.
If you are not sure how much your property is worth, have a look at www.hometrack.co.uk. Hometrack provides the most in-depth, up-to-date and independent survey of house prices and market trends in England and Wales.
How much can I borrow?
If you have an excellent credit rating, you could borrow in total up to 125% of the value of your current home. Even if you have a bad credit history, secured loans are available usually up to 90% of the value of your property. The overall borrowing available would be the total of your existing mortgage plus the secured loan and is subject to underwriting.
Homeowner loans are available between £5,000 and £250,000.
A question that is frequently asked is ‘How much can I borrow?’ The maximum borrowing on a secured loan is based upon your credit score and an affordability calculation. As traditional income multiples are not used, you can usually borrow more than you might think.
Secured homeowner loans are available to employed and self-employed alike. If you cannot provide evidence of your income, schemes are available on a self-certification basis up to 100% LTV.
Who will give me a secured loan?
Finance Now offer over 200 secured loans from a range of lenders, including:
Black Horse
Blemain
FNB
I Group
Nemo
Paragon
Prestige
Spoke Lending
Welcome
White Label
Have a look at our case studies to get an idea of the type of clients that Finance Now has helped.
Get a quote for your secured loan today, all enquiries welcome.
