A secured loan is any loan that requires the borrower to provide the lender with some form of security in the event that the borrower defaults on the loan payments. Typically the security is the borrower’s home, regardless of whether it is mortgaged or owned outright. Loans secured against a property that is already mortgaged are known as second charges, whereas loans secured against a property that is owned outright with no existing mortgage in place, are known as first charges. Secured loans are easier to obtain than unsecured loans, due to the fact that the lender has the added security that the loan is secured on your property.
Secured loans are available in varying amounts and for many different purposes, including debt consolidation, home improvements, weddings etc. The amount which Mortgage Solutions can assist you to borrow varies from £3000 to £50000, although some of our panel lenders will consider up to £100000, depending on your personal circumstances. The amount borrowed is repaid monthly over a set period of time at the outset, which typically varies from 3yrs to 25yrs. You should be aware that penalty charges may apply if you repay your loan earlier than agreed.
Lenders charge interest on the amount which you borrow, which is referred to as the Annual Percentage Rate (APR). The amount you can borrow, the term over which you can repay and the APR will depend on the amount of equity in your property, the lenders view on your ability to repay the loan and your personal circumstances. Mortgage Solutions will review all of these factors and will research the market on your behalf to find you the best secured loan deal to meet your needs.
Administration fee charges are often payable with this form of lending, but Mortgage Solutions will advise you in full on all likely costs associated with the loan prior to any arrangement being agreed.
The overall cost for comparison is 6.8% APR
This is intended as a guide only - other criteria may apply, and we can advise on any special terms and conditions which your selected lender may wish to impose at the time of application.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.