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What is a secured loan

What is a secured loan

A common loan question we're asked

So, what is a secured loan? The answer is very simple. A secured loan, also often referred to as a homeowner loan is simply a loan that is secured against property – just like your mortgage is.

Why is a secured loan secured on my property?

Unlike unsecured loans where the loan value is limited, secured loans allow you to borrow from £5,000 to £2,500,000 and because of the higher value, the lender secures this against your property secondary to the mortgage.

Please be aware that when consolidating items of credit, whilst your monthly repayments may reduce, you could be extending the term and therefore the total amount of interest you will pay.

What are the benefits of a secured loan?

  • Low interest rates

    A major benefit of a secured loan is the low rates available to homeowners. Rates can often be significantly less for customers that the unsecured loan options available to them.

  • Difficulty with credit in the past?

    For customers who may have had difficulty with credit in the past and are looking to consolidate and rebuild their credit score, securing a loan can be a great option to help them reduce their monthly credit repayments.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

If you've asked yourself "What is a secured loan?" - then these FAQs should help you...

Second Mortgages FAQs

What are Second Mortgages?

Second Mortgages, also known as homeowner loans, secured loans or second charges are secured against your property. Second Mortgages are ideal if you want to borrow a large amount of money and are usually used to consolidate existing credit or to make home improvements.

As your property is provided as collateral for the loan, loan providers see you as less of a risk. However, your home could be at risk if you are unable to repay your Second Mortgage.

What do I need to qualify for a Second Mortgage?

You need to be a homeowner with an existing mortgage. The mortgage must be a first charge on your property, and a Second Mortgage will sit behind it.

How much can I borrow

Second Mortgage amounts are available from £5,000 to £2,500,000 but if you have a request that is outside this range, we may still be able to help on a referral basis. Please contact us and we will do our best to help you.

How long does it take to get the Second Mortgage?

It can vary from case to case but from the day you call us, we aim to complete in just a few weeks and we will always keep you informed throughout the process. We pride ourselves on offering the best possible customer service and as a result, believe we can offer one of the quickest completion times within the Second Mortgage industry.

Can I borrow more in future?

If you would like to increase the amount you wish to borrow, simply contact your friends here at Loans Warehouse to discuss your options.

Does it require a credit check?

At Loans Warehouse we conduct 'soft searches' which do not affect your credit rating in any way. We promise not to leave a footprint on your credit rating.

Have a question not listed here? Visit our FAQ section.

What is a secured loan application process?

We aim make the secured loan application process as simple as we can for you. To start your application, apply online now and we’ll contact you within the hour and provide a no-obligation loan quotation.

Once you are completely happy we can then guide you through the process to make sure you loans completes as quickly as possible for you.

Representative Example: If you borrow £33,000 over 14 years at a rate of 7.555% variable, you will pay 168 instalments of £355.52 per month and a total amount payable of £59,727.36. This includes the net loan, interest of £22,932.36, a broker fee of £3300.00 and a lender fee of £495.00. The overall cost for comparison is 9.9% APRC variable.

Secured Loan Application Form

Apply now, one of our team will call you straight back and we could give you a decision on your within the hour.

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Please ensure you have read and understood all information before applying.

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  • Nikki has gone above and beyond my expectations on her service levels and I would have no hesitation in recommending your company.

    Nikki has gone above and beyond my expectations on her service levels and I would have no hesitation in recommending your company.

    Debbie, Ashton-Under-Lyne

  • Just wanted to drop you a quick line to say thank you for all your help securing the loan we requested. Throughout the process you acted professionally but seemed to care and helped us through each stage.

    Just wanted to drop you a quick line to say thank you for all your help securing the loan we requested. Throughout the process you acted professionally but seemed to care and helped us through each stage.

    Kevin, Portsmouth

  • Thank you so much for your help recently in sorting a loan out on our behalf. You we're really helpful, have a loverly manner which put us at ease, were very very efficient and made the whole process really simple.
You are a credit to your company.

    Thank you so much for your help recently in sorting a loan out on our behalf. You we're really helpful, have a loverly manner which put us at ease, were very very efficient and made the whole process really simple. You are a credit to your company.

    Steve & Caroline, Rugby