Secured Loans
“I’m self-employed with no accounts… no-one wants to know me!
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“We’ve missed some mortgage payments… no-one can help us!”
TV and tabloid adverts can paint a picture where secured loans are the only option.
The reality is that in the UK we now have one of the most diverse lending markets in the world and virtually all homeowner scenarios can be catered for by a variety of solutions.
Mortgage of Choice will make an unbiased appraisal of individual
circumstances and, taking all costs into consideration, will quickly determine whether the best solution is a secured loan, remortgage or possibly short term bridging finance.
Advantages of Secured Loans
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No up-front set up costs
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Speed of completion – average 2 weeks
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Redemption fee on loans less than £25000 now just 1 months interest
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Terms of 3 – 25 years
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Self-Certification of income to 100% is available
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Up to 125% Loan to Value available
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Interest-only, fixed, discount and flexible loans available
Disadvantages
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Secured loan interest rates are considerably higher than mortgage rates
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Early redemption of loans over £25000 may result in unsympathetic rebates
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The promotion of Payment Protection Insurance added to the loan (Mortgage of Choice will always offer it’s customers a choice of protection solutions best suited to individual needs and budget)
It’s a natural focus of borrowing to zoom in on the lowest rate of interest but when ‘short-term’ debts like personal loans, and more arguably credit card balances, are consolidated into long term mortgages the overall cost of the borrowing must be taken into account. This means looking not only at the rate of interest charged, but the number of years over which the payments and interest are spread plus any costs / fees incurred.
Secured loans can have a role to play in that they are typically taken over a shorter term than the main mortgage. Though the rates might be higher they can impose a discipline of paying off consolidated debt quicker and thereby lessen the overall cost of the borrowing.
Possible scenarios for using a secured loan
- You wish to consolidate debts and pay them off in the short / medium term
- You want to raise capital / consolidate debts but would incur a large penalty by re-mortgaging to achieve this.
- Your mortgage is at a good interest rate with a mainstream lender but a recent credit blip means they will not assist with a further advance. A secured loan can be a bridge that keeps the main mortgage in place whilst credit rating is repaired.
- Your status – income or type of employment - has recently altered and your main mortgage lender will not assist.
Please note that secured loans are referred to preferred suppliers and Mortgage of Choice is not responsible for their advice. As regulated mortgage brokers we hold as paramount the interests of our customers and seek to provide them with access to as broad a range of lenders as possible. Secured loans are not regulated by the Financial Services Authority.
Can We Help To Secure The Right Additional Finance For You?
0800 988 1889 enquiries@mortgageofchoice.co.ukEnquiry Form
Secured Loans are not regulated by the Financial Services Authority.
Think carefully before securing other debts against your home.
Your home may be repossessed if you do not keep up repayments on your mortgage.
John Morgan trading as Mortgage of Choice is an Appointed Representative of Home of Choice Ltd which is authorised and regulated by the Financial Services Authority. Register No.302967 http://www.fsa.gov.uk/register/