Give our friendly secured loan team a call now on 01268 261599.
We're here to help
Really simple process
Straight forward application and easy to follow all the way through. great customer service. Paul S - Scotland
Paid out really fast
Got my loan really quickly, great experience and professional team. Julie M - Manchester
What are Secured Loans
A secured loan is a loan secured on your property although it can be secured on a number of high value items it will be against your home 90% of the time. Unlike a personal or unsecured loan which normally only allows up to £25,000 to be borrowed a secured loan can go up to £2,500,000 depending on the value of the property and the persons credit history. Due to these factors the rates of borrowing are more favorable then an unsecured loan.
The amount you will be allowed to borrow via a secured loan or homeowner loan will still depend on your credit history, your income and existing credit commitments. Your credit score will also be a deciding factor as will the amount of equity that you have available in your property.
Secured loans are no different from other financial products such as bank accounts, credit cards in the fact that deals can vary widely within the market so when you're looking for a secured loan it's imperative that you do your due diligence and shop around for the very best deal that suits your needs. First Quality Loans work with some of the top lenders in the market and can access some of the best deals for secured loans. Like all products in all markets there are good and bad but luckily we have you covered and will help you find the best secured loan deal.
The process for secured loans can takes a bit longer than a smaller unsecured loan but will typically be quicker than a mortgage or re-mortgage. The time can vary depending on the lenders processes, the amount you wish to borrow and your specific circumstances. Once everything has been approved you could receive your money within 48 hours.
Reasons To Look For Secured Loans
The money from a secured loan can really be used for any purpose although most lenders will want to know why you require the money. Some of the reasons people decide to take out secured loans are for home improvements to add value to their property. Sometimes its for debt consolidation to help make monthly payments to other creditors more manageable and for some its for business purposes. If you require anything less than £5000 you will be better to opt for an unsecured loan instead.
Some other examples might be larger purchases such as a caravan holiday home or events such as a wedding. Home improvements as mentioned earlier could be for new windows, internal furniture or maybe an improvement to the garden such as a purpose built shed or conservatory. Some people used a secured loan for a deposit on a second property
To be eligible for A Secured Loan You'll Need
A good credit history - Having a good credit profile will help you get better interest rates and give you more options to the amount you can borrow. Lenders will still provide a secured loan to people with less the perfect credit history but you can expect a higher interest rate.
A solid UK Address History - To be considered for a secured loan you will normally have to have been a UK resident for a minimum of three years and having a solid address history will help your application.
Able To Make Repayments - Different lenders will have different interest rates but you should be confident you can make the re-payments on time throughout the duration of the loan.
When choosing to take out a secured loan its important to make sure you can afford the re-payments not just in the short term but also for the long term of the agreement. Its worth thinking about how you would make the re-payments if something unexpected happen such as a redundancy. A contingency plan is always good to have. You may have the opportunity to repay the loan early but remember some lenders charge a penalty of you pay back the loan early as they will be missing out on the interest should the loan gone the full term.
Things to considor with secured loans
Although secured loans enable you to borrow a higher amount of money and over a longer period of time it is important to remember that homeowner loans are secured on your property which means if you do not keep up the repayments on your loan you property may be at risk. This is a big reason to make sure you can comfortably meet the monthly repayments before entering into any loan agreement but especially a loan that is secured on your property.
A lender will make a decision on a combination of things such as your credit history and the equity in your property if there is sufficient equity in your property and you have a good credit history it is likely you will be offered a competitive rate of interest and also have the power to shop around for the best deal. If your credit is less then perfect you may still be able to get a secured loan but the interest may not be so favourable. It is worth making an income and expenditure sheet before applying so you definitely know you can easily meet the monthly repayment.
Secured loans are not ideal if you only want to borrow £3000 for example, this would be better covered by an unsecured or personal loan. First Quality Loans find the best deals on unsecured loans and it only takes 60 seconds to complete our uncomplicated form. All secured loans lenders and brokers should be authorised by the FCA
First Quality Loans is a trading name of First Quality Finance which is Authorised and regulated by the Financial Conduct Authority - Firm registration number 758281
Authorisation can be checked on the Financial Service Register at www.fca.org.uk. Licenced by the Information Commissioners Office, (ZA200642)