What is a secured loan?

A secured loan is a financial product that is secured against a property. While most borrowers use their house as security, secured loans are also known as homeowner loans.

How do I know if I am eligible?

If you have equity in your property, it’s most probable you will be eligible.

How long before I get the funds?

The average time to receive the money in your account is approximately 2-4 weeks.

What can I use the loan for?

Although home improvements are the most popular reason for secured borrowing, people take out secured homeowner loans for a wide variety of reasons.

Secured loans can be used to pay for:

  • A New Car or Recreational Vehicle.
  • Luxury Holidays and Honeymoons.
  • Debt Consolidation and Paying Off High-Interest Unsecured Debts.
  • A New Conservatory, Loft Conversion or Kitchen Extension.
  • Patios, Driveways and Landscaped Gardens.

How long will the loan last?

Most unsecured loans are taken out over a period that extends no longer than five years. However, with a secured loan, you can spread the repayments over a period lasting anywhere between 5 and 30 years!

Of course, the longer the repayment terms, the more you end up paying back, although the monthly amount will obviously be lower.

Will my loan application show up on my credit file?

When you apply for a homeowner loan using our services, we perform a quick check to verify the details you have provided us with and this does show up on your credit file, albeit with no adverse effect.

Other lenders should not be able to see this information. If you are approved for finance and you accept the loan then this will be registered on your file and the information will be available to anyone else looking at your credit history.

What is a homeowner loan?

A homeowner loan is a secured borrowing product that is taken out using the available equity in a property owner’s home as security for the lender.

What if I have bad credit?

If an individual possesses a poor credit score, they may encounter challenges when seeking a favourable loan agreement with reasonable interest rates due to previous financial obligations that were not met successfully.

However, even if you have CCJs and a poor credit rating, there are still a number of borrowing options available, as there are many people in the same situation. With a bad credit loan, we will look at your application on a one-on-one basis and search for the most affordable borrowing product in line with your specific circumstances.

Since the loan is backed by your property, lenders have the assurance that their funds are protected as they possess the legal authority to sell your home in the event of a loan default.

What does LTV or Loan to Value mean?

Loan to Value (LTV) is used to assess the loan amount relative to the actual value of a property.

What are consolidation loans?

A consolidation loan is a secured borrowing product that is used to reduce the amount of monthly repayments a debtor must make, whilst also lowering the payment amount itself. Consolidation loans can be beneficial in reducing the expenses associated with high-interest items such as credit or store cards, as well as managing other unsecured debts like hire purchase agreements and costly lending options.

How fast is the decision-making process for secured loan applicants?

If you need quick approval for a secured loan, we are happy to inform you that we normally react within 15 to 20 minutes after receiving the initial application. We can also provide you with extra information, including repayment choices, estimated interest rates, and any related expenses.