Secured Homeowner Loans | Second Charge Loans
- Competitive interest rates
- Long repayment period
- Flexible terms and conditions
- Swift approval and processing
- Low repayment amount
- Bad Credit Welcome
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.
Secured loans are repayable on a monthly basis. If there is a degree of flexibility then the lender may permit over payments and lump sum payments, both of which allow you to clear the secured loan over a shorter time period than first agreed. If your secured loan is a truly flexible product then you may also be able to withdraw funds from the account on a rolling basis, providing you stay within your credit limit. secured loan lenders also offer repayment holidays or payment breaks, allowing you to take a break from your monthly repayments either at the start of the loan (known as ‘deferred repayment’) or at an agreed point during the term. Interest will continue to accrue on the outstanding balance and this may result in increased monthly payments, so your loan is still repaid over the term agreed at the outset.
How much can I borrow?
A question that is frequently asked is ‘How much can I borrow?’ The maximum borrowing on a secured loan is based upon your credit rating and an affordability calculation. As traditional income multiples are not used, you can usually borrow more than you might think.
If you have an excellent credit rating, you could borrow in total up to 80% of the value of your current home. Even if you have a bad credit history, secured loans are available usually up to 75% 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. Secured loans are available between £5,000 and £250,000
Getting accepted for a secured loan can sometimes prove difficult if you’ve got bad credit, have changed addresses frequently, have no previous credit history or are self-employed. We have lenders who can help customers who have difficult personal circumstances. The interest rate is likely to be higher than that offered by a standard secured loan provider, but the chances of getting accepted are far greater.
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