Unsecured v Secured

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Unsecured versus Secured

There are several advantages to secured loans. First, you can borrow a larger amount with a secured loan than with a personal loan that is unsecured. For example, many banks and building societies will lend up to £100,000 on a secured loan. With a personal unsecured loan, the maximum advance you are likely to get is £15,000.

You can also take longer to pay back the debt – a term of 15 or 20 years is not unusual with a secured loan, as opposed to five or perhaps 10 with the unsecured option.  A longer term usually means lower monthly repayments, but remember that you will pay more in total interest if it takes a long time to clear the debt.

The interest rates on secured loans are normally a lot lower than the rates on unsecured borrowing, but they do vary from lender to lender. It is always best to seek professional advice as to what type of loan and rates will meet your needs.

Lenders will take into account your credit score when they set the rate for a secured loan. However, they tend to be more sympathetic to borrowers with poor credit scores because the loan is secured against your property.

Secured loans are often used to finance home improvements or to consolidate other debts and can be a credit lifeline.

Need some advice?

If you are looking to raise capital from the equity within your property please make contact and one of our fully qualified advisors will be happy to assist.

Post Brexit Increase

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Enquiries increasing post Brexit

A recent report has revealed the 2nd charge market has received an “unprecedented” number of enquiries following Britain’s vote to leave the EU.

In a post-referendum outcome it is reported that the uncertainty in the market caused a record number of customers to make new lending enquiries.

It is without doubt the vote that has caused the upturn in enquiries as householders look to stabilize their finances. It seems the public are very keen to reduce the amount of high interest debt within the household, credit cards in particular.

Good news for the borrowers is that lenders are keen to assist and interest rates are remaining stable. Many lenders are increasing their product range to meet the new demand so securing a second charge loan should be straight forward.

A big advantage of second charge lending is the speed of completion which is always an important factor. On average a straight forward case will complete within 25 working days, and in some cases even quicker.

These days the lending market can be a very confusing area. If you are thinking of raising new capital do get the correct advice as there are many options available to most homeowners.

Can we assist?

If you require help with your new loan please do contact one of our fully qualified advisers, they will be happy to guide you in the right direction.

 

 

 

 

A Surge In Lending

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Secured Lending Surges On

 

Secured second charge lending was 39% higher in May and June this year compared to the same period last year. We reported this financial year has started with record levels of applications and this shows no signs of slowing.

 

Second charge lending has always been in the market place but over the last 2 years this form of funding has grown significantly. Landlords are increasingly turning to second charge lending as it is far more cost effective in the long term and advancement of funds is significantly quicker than a traditional re-mortgage.

 

There is little doubt lenders have seen the potential growth in this area and they have responded well, offering a good range of flexible loan deals especially to landlords.

 

In the years gone by if a homeowner wished to raise capital from the equity within their home brokers invariably recommended a re-mortgage. This situation is changing as all parties become more aware of the advantages of a second charge loan. If you are looking to release funds tied up within your property it is strongly recommended to explore this type of loan as you could save a great deal of money.

 

Help required?

 

If you are considering raising funds on your property please do contact one of our fully qualified advisers who will be happy to guide you in the right direction.