Get The Best
Secured Loan Rates

If you’re a UK resident who owns a home or holds a mortgage with sufficient equity to use as loan security, then yes!

The key difference between a secured and an unsecured loan is that an unsecured loan doesn’t require collateral; it is generally based on your credit history and affordability alone. However, in some cases, you might still need to sell assets to settle unsecured debts. Unsecured loans are typically available for smaller amounts than secured loans. Generally, secured loans come with more competitive interest rates, as the collateral serves as a type of insurance for the lender. If a secured loan isn’t repaid as agreed, the lender has the legal right to claim the assets or property used as security.

If you’re planning to take out a secured loan, it’s crucial to compare the full market to find the best deal. Look at all borrowing costs, terms, and conditions, as well as the Annual Percentage Rate (APR). Consider factors such as whether the loan has a fixed or variable rate, the repayment term, any options for early repayment and possible penalties, and how your credit score might impact costs. You may also want to evaluate the value of the assets you’re using as collateral, as loans with a lower Loan-to-Value (LTV) ratio often come with more competitive APRs and lower borrowing costs.

Most financial products, including secured loans, can help build or repair your credit score—provided you meet your obligations, make all payments on time, and even consider overpaying when possible. However, there may be more efficient ways to boost your credit without taking on additional debt. Reach out to one of our advisors for guidance.

Almost any type of loan can be consolidated as part of a broader debt consolidation plan. Whether this is a suitable or recommended option depends on your current financial situation. Given the potential risks of secured lending, it’s essential to seek independent advice before making a final decision. If you’re managing multiple debts, it’s especially important to thoroughly and objectively explore all your options.

If you’re in a strong financial position and manage your debts responsibly, there’s technically no limit to the number of secured loans you can hold. However, it’s important—both for you and the lender—to ensure that the borrowing is reasonable and manageable. Remember, just because you’re eligible for another secured loan doesn’t mean it’s the right choice. If you already have one or more secured loans and are considering an additional one, consult an independent advisor before proceeding.

You may qualify for a second charge homeowner loan even if you have no equity in your property. Some lenders offer loans that exceed the value of your home. In these cases, it’s advisable to seek assistance from an independent advisor.

Missing payments can lead to penalties, increased overall borrowing costs, and a significant negative impact on your credit report. If you regularly miss payments or fail to make several in a row, the lender may take legal action to reclaim your home. If you experience or foresee any difficulties in repaying your loan, it’s crucial to reach out to your lender right away to discuss your options.

The option to repay a secured loan early is typically available. However, lenders may charge significant “early repayment fees.” This is a crucial factor to consider when applying for a secured loan. If you want the flexibility to repay your loan early, make sure the lender’s penalties for early repayment are reasonable, or that you are fully informed about any potential charges.

Secured loans and second mortgages are essentially the same, as both use your primary residence (or another property you own) as collateral. If you’re already repaying a mortgage on your home and then take out a second secured loan on the same property, you are effectively obtaining a second mortgage. This is why the underwriting process for this type of secured loan closely resembles that of a traditional mortgage application.

It’s crucial to reach out to your lender as soon as you face or foresee any difficulties with repayment. If the issue is temporary, the lender may be open to discussing a deferred payment plan or a more flexible arrangement. However, if you are unable to repay your secured loan as agreed and cannot reach a new agreement, the lender may repossess your property and sell it to recover the loan amount and associated costs.

Consolidation is worth considering if you have accumulated multiple debts that have become difficult, costly, and complicated to manage. If the interest rate on a consolidation loan is lower than those on your existing debts, it could save you time, effort, and money. You may also want to consider consolidation if your current debts are causing you to miss or delay payments regularly, which can negatively affect your credit score. However, it’s important to recognize that consolidation is a form of debt in its own right. If you’re struggling with existing debts and thinking about consolidation, consult an independent advisor to explore your options.

If you’re approved for a secured loan and plan to pay off the balance quickly, it’s beneficial to inform us in advance so we can identify the most suitable product for your specific needs. Most lenders impose early repayment charges that typically equal eight weeks’ worth of interest on the remaining balance at the time of repayment. However, the exact rates can vary significantly between lenders.

A secured loan can be used for virtually any legal purpose. Common reasons people apply for this type of credit include home improvements, debt consolidation, and financing once-in-a-lifetime experiences like holidays, weddings, and other celebrations. As long as you can repay the loan and have the necessary collateral, most lenders are generally unconcerned about the specific reason for your financing request.

While most unsecured loans typically offer repayment terms of 1 to 5 years, secured loans provide much longer options. With a secured loan, you usually have between 5 and 25 years to repay the outstanding balance. It’s important to keep in mind that a longer loan term will generally result in higher total interest costs. However, extending the repayment period can make the monthly payments more manageable.

If you apply for multiple loans within a short timeframe and face repeated rejections, most lenders may become wary of your behavior and hesitant to work with you. However, when you use our services to apply for a secured borrowing product, we only conduct a soft credit check. This check is recorded on your file but isn’t visible to other lenders. Once you are approved and choose to proceed with your secured loan, the information will be officially documented and accessible to anyone reviewing your credit file.

Once we have your details, we match it to one of our Secured Loan Partners (Mortgageable does not advise on Secured Loans) they can usually make a lending decision in under 20 minutes. However, the final approval will depend on your decision to proceed with the application and several other factors. Once you submit your inquiry, we will pass it along to our secured loan partner, who will then provide you with a shortlist of suitable products from the entire market, which you can choose to accept or decline. Once you decide to move forward, they act quickly to ensure you receive the funds you need as soon as possible.