Secured Loans
Why use a secured loan?
A secured loan does not require any upfront costs such as survey fees or solicitors costs. No lenders arrangement or booking fees. Your money is available in 10 to 30 days depending on the loan amount and the lender used. If you currently have an attractive mortgage rate, you would lose it if you remortgaged. A secured loan means you would keep your existing low interest mortgage rate. Also, many mortgage lenders will charge an expensive redemption penalty if you were to change your mortgage during a special rate period, using a secured loan will not incur any penalty charges.
The interest you pay will depend on the amount you want to borrow and whether you can prove your income or not. The amount of interest you pay will also depend on whether you have any late payments, defaults or CCJ’s. Applicants with no recent credit history problems will attract the lowest interest secured loans and gradually you pay a little more interest according to how many credit problems you have on your credit file. The 3 main categories of lending are -
- Secured loans less than £25,000.
- Secured loans over £25,000.
- Self Cert secured loans.
Secured loans less than £25,000
All secured loans less than £25,000 are regulated by the Financial Services Authority (FSA) and therefore have a mandatory 8 days cool off period after you submit your application. It normally takes 4-5 weeks from applying to receiving your money. If you pay off the loan early the lenders normally charge 1 or 2 months interest. Those applicants with clean credit files will access the lowest interest rates, with a gradual increase in interest according to the number of CCJ’s, defaults and late payments you have on your file. We always guarantee to use the lowest interest rate available according to your circumstances.
Secured loans over £25,000
These loans do not have a cool off period and normally take 3-4 weeks from applying to receiving your money. Most lenders will charge a 6% redemption penalty within the first 3 years, which is standard within the industry. Those applicants with the cleanest credit files will attract the lowest interest rates and the interest rate gradually increases according to the number of defaults, CCJ’s, etc. However, we will always guarantee to find the lowest interest rate secured loan that will match your circumstances.
Self Cert secured loans over £25,000
Self cert secured loans are very popular. Some applicants have properly prepared accounts and most do not. Some applicants are self employed but many self cert for other reasons, i.e –
- They have more than 1 job
- A lot, if not all income is commission based
- Income comes from several sources
- Company directors with significant pay in dividends
We can accommodate almost any set of circumstances and once again, the lowest interest rates will be available to the cleanest credit files, whilst we will always select the lowest interest rate that fits your personal needs.
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- We find you the lowest interest rates >>
- We get the lenders decision in principle >>
- You get a secured loan
offer >>
- How much can I borrow?
The maximum loan is usually from 85% of the value of your property and up to 125%, depending on your circumstances.
- Can I use the money to clear my debts?
Yes, consolidating many smaller more expensive loans into one loan is very popular.
- Can I use the money as a deposit on another house?
You can use the money for almost anything you want.
- Does the lender carry out a credit search?
Yes.
- Does the lender carry out a survey?
Yes, but the lender pays for the survey.
- Do I have to pay solicitors?
No, the lender pays.
- Can I get a fixed rate secured loan?
Yes, they are all fixed rate, so you know exactly how much you will pay every month.
- Over how long can I pay off a secured loan?
From 1 to 25 years.
- Can I pay off the loan early?
Yes.
- Can I avoid the 8 day cool off period for loans less than £25,000?
No, it is built into the regulations that you must be given the cool off period.
- Can I use the secured loan to stop repossession?
Yes.
- I am self employed but have no accounts?
No problem.
- I am a contract worker, I do not have pay slips or accounts?
No problem.
- I live in a shared ownership property, can I get a secured loan?
Yes.
- I have recently been discharged from bankruptcy, can I get a secured loan?
Yes.
- I am currently paying an IVA, can I get a secured loan?
Yes, but we need more information.
- Can I pay interest only?
Yes, but only a limited number lenders offer this.
- If I self cert, do I need accounts?
No, but a self cert with some evidence of income, ie, your main job, will get a lower interest rate.
- How long do I need to be self employed to self cert?
There is no minimum, you can self certify at any time.
- Do I pay a higher interest rate if I self certify my income?
Yes, because the lender is taking more risk.
- Can I self certify my income if I am employed?
? Yes, self cert is open to anybody because so many peoples incomes are not limited to just one job.
- Do I need an accountant to self cert my income?
No, self cert can merely be confirming your income on the application form, but your self certified income must accurately reflect your income.
Your home may be repossessed if you do not keep up
repayments on
your mortgage.
Consumer Credit Licence No: 562186
Data Protection No: PZ9286553
