A secured loan is a way of releasing some of the money in your home wihtout changing your mortgage. This might be useful if you are tied your lender with redemption penalties and they can not offer you further finance on you home.
How does a secured loan work?
Pretty much the same way as a mortgage, after an initial fact finding chat, we find a lender who can help you and has a rate you are happy with. Once we are agreed we submit the application and process docuemts as we would a mortgage. The timescales are much quicker though, you can usually have funds in about 2 weeks.
- A secured loan sits next to your mortgage.
- Can be much quicker to arrange funds for you.
- Rates and fees are usually higher than a mortgage.
- Available even with past credit problems.
- Ideal if you are teid in to your lender with penalties or your lender can not help you with extra finance.
Of course it’s a little more detailed than this but that is where we really help with guidance and management everystep of the way.
How much does a secured loan cost?
As you can expect there are fees involved in the process, your adviser will be able to detail these as they do vary and will depend on your personal circumstances.