Secured Loans
Secured Loans (often called second charge mortgages) are usually in the form of a second charge loan, secured against your property. This can be secured against any type of property and it works the same as a mortgage, you choose a term of the loan and make either interest only payments or capital repayments, for the term of your loan.
You need to have a first charge in order to get a secured loan and there are a number of reasons why someone would take a secured loan, with the main few being home improvements, a property purchase or debt consolidation. We have an FAQ section here on secured loans.
Secured loans are often a much quicker process than taking a full mortgage as there is no legal work involved for the lender. You should always contact your first charge lender first to see if they can offer you a further advance of funds, as they will almost always have better interest rates on a further advance than what a second charge can offer you. You can also get a third charge but most brokers will usually push you away from this unless extremely necessary as these are very expensive.
Please have a play around with our custom built second charge mortgage calculator, we advise using rates between 5.5% and 9% for second charges in the current market and please only include the additional borrowing you require. If you are interested in speaking to us about a secured loan, please submit an enquiry with the form provided.
Secured Loan FAQs
How long does a secured loan take to set up?
Second Charges often don't have the need for conveyancing, meaning that a long winded part of the property finance process is removed. This means that the correct answer for this is 'however long it takes the lender to assess your case and offer you the money and then how long it takes you to accept the offer'. Lenders will receive your accepted offer and usually fund within 24 or 48 hours.
Do I need a good credit rating to get a second charge?
Not necessarily, no. Most second charge lenders will consider debt consolidation and understand that clients who need debt consolidation may have had some historical adverse credit. Second charge mortgages are a great way to consolidate your payments down to one, often, lower monthly payment. It is always best to speak to a broker on if this is suitable for you.