Secured Personal Loans

Secured personal loans are loans secured against your property. They are sometimes called second mortgages or second charges on a property. You must therefore own some property to be eligible for this type of loan.

Tell me more about secured personal loans

• Lenders will offer you a longer repayment term on the loan, which means you will have a longer period over which you repay, as you are securing the loan against property.
• This has the effect of reducing the amount you will be repaying each month.
• You will also enjoy a better rate of interest, as the lender has the comfort of knowing that they have security. The security you have provided means they are guaranteed to get their money back (although your home may be at risk if you fail to keep up repayments), so the lenders of secured personal loans regard you as lower risk and more attractive business, hence the low rate.
• It's easier to get secured personal loans than unsecured personal loans. There are almost no restrictions on what you can use the money for, so you can increase the value of your home with refurbishments, improvements or even build an extension. Alternatively, you could cover the expense of a wedding, extravagant holiday or new baby. You can even use secured personal loans to pay off existing debts and consolidate them into one monthly payment.
• Even applicants with a bad credit history are eligible for secured personal loans due to the security provided, which reassures lenders they will be repaid. So even if you have had financial difficulties in the past, you can still apply.
• Similarly, self-employed people can find it difficult to get a personal loan, but with a secured loan, it is far easier, and many secured loan lenders will happily lend to self-employed people.

How much can I borrow?

The amount you can borrow with secured personal loans will depend on the value of the property and the amount of mortgage you currently have outstanding. A lender will also look at circumstances - your outgoings, income and the information that is registered on your credit file (including any adverse credit information). All these factors will affect the amount you can borrow and the interest rate you are offered.

Contact Explore Finance, one of the UK's largest independent loans brokerages for a quote. Apply online for a fast response.