FREQUENTLY ASKED QUESTIONS
What Is a Secured Loan : A second charge mortgage allows you to use any equity you have in your home as security against another loan. It means you will have two mortgages on your home. Equity is the percentage of your property owned outright by you, which is the value of the home minus any mortgage owed on it.
Why would I apply for a Secured Loan: When a Personal Loan or Further Advance on your mortgage cannot offer you the amount and/or term you require OR you have been refused based on your credit score. When you pay a low rate on your mortgage and you would lose it by re-mortgaging OR you would have to pay high redemption penalties.
How much can I borrow: Personal Loans are capped at £25,000 and based on a credit score . Secured Loans are available up to £2.5m but the amount you can borrow will be limited by what you can afford and of equity available in your property.
How do I apply for a Secured Loan: You can apply for a secured loan directly by going to any secured lender. However, the quickest and best way is to apply via an independent broker. An independent broker will search the whole market quickly to find the best & most suitable product for your needs and will save you a lot of time & money!
Is there lots of paperwork to fill in: No, if you apply through an independent broker everything can be done over the ‘phone. Your personal broker will take care of all the paperwork for you.
Is my information safe: We take your privacy and the security of your information very seriously; any information shared is kept safely and securely. We will need to share your information with our panel of lenders in order to make sure you are offered an accurate quote.
Will a quote effect my credit score: On your initial enquiry a ‘soft search’ is carried out to help us assess your application and offer you an affordable and suitable Secured Loan. You will be able to see this footprint on your credit file but it will not be visible to other lenders. It is only when you confirm to us that you want to proceed and return a signed application form, that we will then perform a full credit search on behalf of the lender.
What is a Reflection Period: When the lender has approved your application they will issue you with a formal secured loan offer. Y ou will be given 7 days to reflect on whether this loan offer is right for you and that you want to proceed with the application. You don’t have to wait the full 7 days before confirming you want to accept the loan offer but we will ensure that you have this time, should you need it.
Why do you charge Fees for your Services: We do not charge any fees upfront, any fee we charge is only payable if you proceed with the loan we recommend and it completes. Our fee is to cover the administration costs we incur while processing your application.You will be able to choose whether you pay the fee separately or add it to the amount you borrow. We will explain our fee structure verbally and in writing so you know exactly what you will have to pay if your loan completes.
What can I use a secured loan for: The most common uses of a Secured Loan is to consolidate debts, fund home improvements, finance a major purchase like a second home or pay for a wedding. If you are considering a secured loan to consolidate debt, you should remember it may take you longer to repay your credit and you may end up paying more in total as a result.
How long will it take for my loan to complete: With a Secured Loan each customer’s application can be unique so the time taken can differ. We aim to complete your application in 2-3 weeks from the point you return your application documents to us.
Can I apply for a secured loan if I have a bad credit : Yes, we have products for most credit profiles.If you have missed payments on loans or credit cards or have CCJs or defaults, we may be able to help you. The APR you are eligible for depends on your individual circumstances, lenders may charge a higher rate of interest if you have a poor credit history.
