Secured Homeowner Loans

Second Charge Mortgages for Homeowners

Secured loans are available for homeowners who want to borrow money without having to remortgage, the loan would be secured against the property and known as a second charge mortgage.

You could borrow between £5,000 to £1,000,000 over 3 to 35 year terms available subject to individual circumstances and credit checks.

A secured loan can be used for almost any purpose they are commonly used for:

• Debt consolidation
• Home improvements
• Buying additional properties
• Holidays and lifestyle purchases
• Weddings
• School fees
• Tax payments

Large purchases

Often, a secured loan is used to fund a large purchase, such as a home improvement project. As the loan is secured against your home, you can be eligible to borrow larger sums of money.

Debt consolidation

Second charge mortgages can also be taken out to re-organise personal finances, and can allow customers to consolidate existing debt into easy to manage monthly payments. All applications are considered and assessed individually but you should be aware that when consolidating existing credit this may result in you extending the repayment term of your debt and could increase the total amount you repay.

Secured Loan vs remortgage

Customers may consider a remortgage as a way of raising money. This would involve paying off your existing mortgage, which may result in a lower interest rate if you are not in a fixed rate period and on the mortgage lender’s standard variable rate (SVR). However, if you are still on a fixed low rate product, you may face an early repayment penalty.

Your existing mortgage lender may refuse additional borrowing, especially if your circumstances have changed since taking out your original mortgage. Also, if you want the money quickly and do not have time to instruct the solicitors required for a remortgage, then a secured loan may be a preferable option. It is important to always take advice from a reputable mortgage or loan broker to help you decide which is the best option for you,

Call or email us now to find out more or to start your application.

 

Representative example

Borrowing of £40,000, plus £1,095 lender fee, totalling £41,095, over 200 months on a variable product with an initial borrowing rate of 4.8%. There would be 200 monthly instalments of £298.90. Total amount payable £59,875, made up of: Mortgage Amount £40,000, Interest £18,685, Lender fee £1,095, Exit Fee £95. Overall cost for comparison purposes 5.3% APRC. Please be advised that any interest rate fluctuations, during the life of the mortgage contract, will affect the total amount repayable.   Liberty Money is a credit broker and not a lender. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.

What should I consider before applying for a secured loan?

Before you apply for a secured loan, there are some things you should think about to give your application the best chance of being approved by a lender.

Regular income and outgoings 

A lender will need to know whether you can afford the monthly repayments on a loan secured by property. They’ll ask about your income, expenses and existing debts.

Your collateral/assets

The more equity you hold in your home or other asset, the less risk lenders will face. This could mean lower rates on your repayments.

Your credit history

You don’t need a spotless credit report to get a good rate, but lenders will usually want to see your borrowing history and any CCJs.

Does credit score matter for a secured loan?

Credit history isn’t everything, but it is important. With loans secured on property, your credit score isn’t the only factor considered. Keep in mind that a better credit score might mean a lower interest rate.