What are secured loans?
A secured loan is any loan that requires the borrower to provide the lender with some form of security. In the case of secured loans the security will be the borrower’s property, regardless of whether it is mortgaged or owned outright. Loans secured against property that is already mortgaged are known as second charges, whereas loans secured against a property owned outright with no existing mortgage in place are known as first charges.
How much can I borrow and over what term?
Secured home-owner loans are available in varying amounts and for many different uses. The amount available usually ranges from £1,000 to £50,000 although some lenders will consider lending up to £125,000 plus. The amount borrowed is repaid monthly over a term agreed at the outset, which will usually range between three years and twenty five years. You may be charged a penalty if you repay your loan earlier than agreed and you should check each lender’s individual policy with regards to this. Upto 100% LTV is available on a home you live in and 85% LTV on homes you rent out for investment purposes.
How will I be charged?
Lenders charge interest on the amount you borrow, which is referred to as the Annual Percentage Rate (A.P.R). The amount you can borrow, the term available and the A.P.R will all depend upon the equity you have in your property, the lender’s view of your ability to repay the loan and your personal circumstances, for example any adverse credit. Subject to your circumstances, you may be able to borrow up to 100% of the property value. The A.P.Rs quoted by the lender will usually be typical rates and these act as a guide only as the exact rate offered will be on an individual basis. As a general rule, it is advisable to compare the A.P.Rs of different loans, as this is a good way to determine how competitive they are. Discount Mortgages has access to 2nd and 3rd charge lenders. If you need money and fast give us a try regardless or your credit history.
Where can a tenant or a homeowner with no equity, with adverse credit raise £100K at rates around 10%?
Here is an overview of the key points of this lender.
- Ideal for purchase deposit, remortgage shortfall or business finance
- Type of loan – unsecured
- Client status – homeowners or tenants
- Rate – from 9%
- Loans – £1000 to £500,000
- Term – 3 to 30 years
- Capital and repayments or interest only
- Adverse – Any – including settling bankruptcies and IVA’s
- Income proof – accounts, bank statements, business start ups – if no affordability will roll up interest
- Where – England, Scotland, Wales, Northern Ireland and Channel Islands
The level of borrowing is dependent on the borrowers having a transferrable pension but they can now borrow up to 50% of the pension value. This is a straight forward CCA regulated unsecured loan but the lender has the security of knowing that the borrowers will get a tax free lump sum at some point in the future.
If you do not have a pension then we have access to a limited amount of lenders which may offer a small unsecured loan based on your credit profile and subject to status.