A secured loan, is a loan where the lender has a legal charge over your property, similar to a mortgage. Bridging finance is another type of secured loan, to help you move from one property to another, before one has sold. Just like a mortgage, if you are unable to repay these type of loans, the lender has rights to your property in order to repay the funds they loaned to you.
Taking out a secured loan to consolidate your debts is a good way to manage and potentially reduce payments on existing debt. If you take out a secured loan with lower interest, and lower repayments, then you can make substantial savings, as well as have all your debt in one place, steadily being paid off.
If you are considering a secured loan to raise extra funds, for say house improvements, then it may be more beneficial for you to take out a remortgage instead. But if you need the funds for something else, to say, invest in a business, the lender will consider the loan to value ratio of the lending against your property and many other factors that they use to assess the ‘risk’ of the loan.
The criteria between lenders varies, and isn’t just based on credit score alone. At Mortgage Advice Hub we will be able to access specialist products, and find the best secured loan product for you. Particularly if you have any poor credit history, we can help you to find a lender and terms to suit you and your circumstances.
*Secured loans and bridging finance is a service provided by one of Mortgage Advice Hub’s trusted partners.
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