How much can I borrow as a secured loan?

The amount you can borrow as a secured loan typically ranges from u00a310,000 to u00a32,500,000. This loan amount is subject to several factors, such as the value of the property you're offering as collateral, your creditworthiness, and your ability to repay the loan. Additionally, lenders may consider other aspects like your income, employment status, and existing debts when determining the final loan amount.

Are secured loans easier to get?

Secured loans are generally considered easier to obtain compared to unsecured loans for individuals with less-than-perfect credit histories or those seeking larger loan amounts. This is because secured loans require collateral, such as a property or vehicle, which reduces the risk for lenders, making them more inclined to offer loans even to borrowers with lower credit scores. Additionally, since the collateral serves as security, lenders may be more flexible with terms and offer lower interest rates compared to unsecured loans. However, it's crucial to note that securing a loan still depends on various factors, including the value of the collateral, the borrower's ability to repay, and the lender's specific requirements and criteria.

Is a secured loan cheaper than a personal loan?

Whether a secured loan is cheaper than a personal loan depends on various factors, including the borrower's creditworthiness, the amount borrowed, and the terms offered by the lender. Generally, secured loans tend to have lower interest rates compared to unsecured personal loans because they are backed by collateral, such as property or a vehicle, which reduces the lender's risk. This often results in lower interest rates and fees for secured loans, making them potentially cheaper in terms of overall borrowing costs. However, it's essential to carefully consider the terms and conditions of each loan type, including any associated fees and repayment terms, to determine which option is more cost-effective based on individual circumstances.

Are secured loans bad for credit?

Secured loans themselves are not inherently bad for credit, as they can actually be beneficial for credit when managed responsibly. By making timely payments on a secured loan, borrowers can demonstrate their ability to handle debt responsibly, which can positively impact their credit score over time. However, defaulting on a secured loan can have serious consequences, including damage to credit scores and potential loss of the collateral used to secure the loan. Therefore, while secured loans offer an opportunity to build credit when managed well, borrowers should exercise caution and ensure they can comfortably afford the loan payments to avoid negative effects on their credit.

Are secured loans good for bad credit?

Secured loans themselves are not inherently bad for credit, as they can actually be beneficial for credit when managed responsibly. By making timely payments on a secured loan, borrowers can demonstrate their ability to handle debt responsibly, which can positively impact their credit score over time. However, defaulting on a secured loan can have serious consequences, including damage to credit scores and the potential loss of the collateral used to secure the loan. Therefore, while secured loans offer an opportunity to build credit when managed well, borrowers should exercise caution and ensure they can comfortably afford the loan payments to avoid negative effects on their credit.

What is the minimum credit score for a secured loan?

The minimum credit score required for a secured loan can vary depending on the lender and other factors, such as the loan amount and the value of the collateral provided. Unlike unsecured loans, where credit score plays a significant role in determining eligibility, secured loans are backed by collateral, which reduces the lender's risk. As a result, some lenders may be more flexible with credit requirements for secured loans, making them accessible to individuals with lower credit scores. However, it's important to note that while a minimum credit score requirement may not be explicitly stated, lenders will still assess the borrower's creditworthiness and financial stability before approving the loan. Therefore, individuals with lower credit scores may still be eligible for secured loans, but they may face higher interest rates or stricter terms.

Can you sell your house with a secured loan?

Yes, you can sell your house even if you have a secured loan, but there are specific considerations to take into account. When selling a house with a secured loan, the outstanding balance of the loan needs to be paid off from the proceeds of the sale before transferring ownership to the buyer. Typically, the lender holding the secured loan will have a charge on the property, which means they have a legal right to the property until the loan is fully repaid. Therefore, when selling the house, the proceeds from the sale will first go towards repaying the outstanding loan balance, and any remaining funds will then be disbursed to the seller. It's crucial to communicate with the lender throughout the selling process to ensure a smooth transaction and to understand any potential implications for the loan repayment.

UK Secured Loan Calculator

Our secured loan calculator is simple to use and helps you get a quick response when enquiring about the expected amount for your secured loan monthly repayments.

*All rates quoted are subject to individual circumstances

Speak with an experienced UK based advisor
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Receive a quotation
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Obtain a decision in principle
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Application signed
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Lender underwriting
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Valuation completed
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Offer received
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Legal undertaking
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Loan completion

Please see below for a secured loan example detailing the cost*:

Item	Value
Net Loan	£50,000
Term	20 years
LTV	60%
Interest Rate	6.59%
Monthly Payment	£375.44
Lender Arrangement Fee	£995.00
Title Administration Fee	£100.00

* The data shown above is an example for illustrative purposes only. All individual cases are subject to the direct lender criteria and client circumstances at the point of application. All rates quoted are subject to individual circumstances.

Below is an infographic explaining the benefits, considerations, and reasons why it is worth using a secured loan calculator.

Additional secured loan fees

Along with fixed or variable rates of interest, additional secured loan fees almost always apply. At the time of agreeing to the homeowner’s loan, there may be an initial administration, secured loan application, or arrangement fee, typically ranging from £250 to £1,000. Additional costs to consider include valuation fees and early repayment fees.

Variable versus fixed rate loans

While variable interest rates can fluctuate at any time, a fixed-rate secured loan will have a fixed interest rate for the agreed-upon term. In both cases, consider how much you will pay over the long term of the homeowner loan, not just which offer seems best.

UK Secured Loan Calculator

Repayment Calculation

Speak with an experienced UK based advisor

Receive a quotation

Obtain a decision in principle

Application signed

Lender underwriting

Valuation completed

Offer received

Legal undertaking

Loan completion

Additional secured loan fees

Variable versus fixed rate loans