Joining the UK financial market as recently as 2004, Masthaven is a comparative newcomer to the scene. Nevertheless, it didn’t take long for this innovative banking brand to gain real traction among consumer and business audiences alike. Today, Masthaven offers one of the most diverse portfolios of lending products on the market. Bridging loans for 75% of the property’s value, development finance with rates as low as 0.78% per month and a variety of mortgages for all purposes.
Here at UK Property Finance, we’re proud to do business with dynamic and forward-thinking lenders like Masthaven. As a fully independent broker, we compare and contrast interest rates and borrowing costs on thousands of secured loan products from lenders across the UK.
How Much Do Secured Loans Cost?
Of course, the million-dollar question from most secured loan newcomers is that of approximate borrowing costs. Secured loans can be great for accessing relatively high sums of cash as quickly as possible, but how much can you expect to pay for the privilege?
Unlike personal loans, secured loan borrowing costs vary wildly from one product to the next. For the most part, interest rates are calculated in accordance with the size of the loan, the length of the repayment period and the amount of ‘free equity’ in the property used as collateral. Some lenders also factor credit scores and proof of income into the equation.
You may also find borrowing costs becoming steeper if you have outstanding debts, arrears, defaults, County Court Judgements or bankruptcy on your record. Not all lenders bring such considerations into the equation, but some do. In short, the safer and more amicable the deal from the perspective of the lender, the cheaper the respective secured loan becomes.
Comparing the Market
It’s also worth bearing in mind how not all lenders offer the same competitive rates on all types of secured loans. In fact, approach 10 lenders with the same request and you’ll probably be looking at 10 completely different deals.
Alongside the interest rate itself – aka APR – you also need to factor additional borrowing costs into the equation. Arrangement fees, administration charges, Payment Protection Insurance and any valuation or legal fees required. Just as some lenders add countless added extras onto your bill, others provide far more transparent services.
The good news is that in order to find the best deal, it’s simply a case of working with a broker you can trust. Our close connections with dynamic lenders like Masthaven enable us to quickly and completely compare the entire UK market. Simply let us know what you need and when you need it – we’ll take care of the rest.
Likewise, if you’re still unsure as to whether a secured loan is the right way to go, you can count on our independent advice and support. We’ll ensure you’re provided with a loan product that meets your requirements and your budget to the letter.