A secured loan is another name for a mortgage. It can be either a first or second ranking charge depending on the client’s circumstances. They are sometimes called homeowner loans or collateral loans but in all cases they provide a way to borrow large sums of money quickly using the equity the applicant holds in their home or rental property. By securing the loan against the equity in the property the lender protects themselves against the applicant failing to make the contractual repayments.
Secured loans can be for as little as £1,000 or as much as £2,500,000 depending on the equity held.
Representative Example: Representative Example: If you borrow £40,000 over 13 years at a rate of 6.950% variable, you will pay 156 instalments of £422.29 per month and a total amount payable of £65,877.24. This includes the net loan, interest of £22,582.24, a broker fee of £2800.00 and a lender fee of £495.00. The overall cost for comparison is 8.7% APRC variable.
Disclaimer: THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOAN SECURED ON IT. Loans are subject to status and valuation, secured on residential property and not available to those under 18. The APRC quoted will be offered to a majority of applicants. You may be offered a higher rate depending on your personal circumstances. All rates and terms may change without notice so please check with Mortgage ID before undertaking any borrowing.
Mortgage ID is a credit broker, not a lender and we will receive a payment from the lender we place the business with. This arrangement does not affect the product we recommend.