A secured loan or secured charge mortgage is simply a way that homeowners can secure a loan using equity in their property as security.
Popular reasons that people want a secured loan include:
- Home improvements
- Debt consolidation
- Divorce settlement
- New car purchase
- School fees
and are suitable when you are tied into an existing mortgage with exit penalties, or have an interest rate that you would prefer to keep, then a Secured Loan (commonly known as a Second Charge mortgage) may be the most suitable option for you.
Secured loans can be arranged on:
- Principle places of residence.
- Buy to Let properties.
- Commercial properties.
Secured loans offer a number of potential benefits:
- Short completion time.
- Usually a lower interest rate than an Unsecured loan (which are limited to £25,000)
- Loans available from £5,000 to £2,500,000
- Avoid paying Early Repayment Charges (ERC) on your first mortgage.
- Early Repayment Charges on a secured loan are typically just one month’s interest.
- Loan qualification determined on affordability-based income multiples.
Please contact us to discuss your requirements and we will tell you the options available to you.