A secured personal loan, sometimes known as a second charge mortgage or homeowner loan, allows you to borrow large sums of money (usually £10,000 upwards) using collateral such as your home as security against repayments.
As a general rule, the amount that you borrow is most likely to be determined by the value of your equity, or in some cases the value of the asset. Whereas the amount of interest payable and the length of the borrowing term are more likely to depend on your individual financial circumstances and credit rating.
Natwest currently do not offer secured loans to non existing customers, although there still a number of UK lenders offering competitive rates for secured loans.
We have partnered with Fluent Money who have access to the best secured loan deals in the market.
Click here for the best UK secured loan deals from £3,000.
Is a secured loan suitable for me?
Like any financial product, there are both pros and cons to taking out secured personal loans, and whether it is the right decision for you to take out a secured personal loan is likely to depend on your situation and the circumstance. A few instances when borrowers might be advised to consider a secured personal loan are when:
- You’ve already got an excellent mortgage rate – If you’ve already got an unbeatable rate on your mortgage, a secured loan will allow you to secure the additional capital you need without disrupting the current rate you have on your mortgage.
- You’ve got an adverse credit rating – Typically lenders of secured personal loans tend to have more flexible lending criteria and are likely to consider a much wider and sever range of credit issues.
- You need the money quickly – Generally, the time it takes from application to receiving the money is much quicker than a mortgage. Secured loans are often quick to set up and in cases where the LTV is low and a valuation isn’t needed, money can be released the same day.
- You struggle proving your income – Secured loan lenders can be more flexible and understanding when it comes to proving your income, which means it is often easier for self employed borrowers and contractors to secure the finances they need.
- You want to raise capital up to 90% of the value of your property – Some secured loan lenders are happy to lend up to 90% of the property’s value, providing that you meet their criteria.
Find the Best Deal
Taking out a secured loan against one of your assets (especially your home) is a big investment, which is why you should ensure that you have the capacity to afford the repayments. Whilst our secured loan calculator can assist you in filtering out a selection of secured loans that fit your criteria, we still urge that you contact a mortgage broker to assist you.
We work with the largest UK specialist secured loan advisory team Fluent Money, who can help you calculate the secured loan terms that you can comfortable afford. Additionally, our expert team can also compare a range of leading and exclusive secured loan deals, to help find the ideal loan perfect for your personal circumstances.
Click here for the best UK secured loan deals from £3,000.