A Secured Loan is a second charge mortgage which allows homeowners to borrow money against the equity in their home.
It can be a useful option where a traditional mortgage isn’t appropriate or where there are early repayment charges on your current mortgage, preventing you from raising finance by re-mortgaging. Providing there is sufficient equity in your property a secured loan or second charge can sit behind the main mortgage and is effectively a top up loan with another lender.
A secured loan is often used for:
- Home/property improvements
- Raising a deposit to buy another property
- Repaying existing credit cards or personal loans
- A major purchase such as a car, installing solar panels or funding a wedding
- Business purposes
- A tax bill
- School fees
Unsecured loans such as a personal loan from a bank, usually limit the borrowing to £25,000. However, a secured loan typically may be available for up to £100,000 dependent on the amount of equity in your home. As the loan is secured, lenders may also offer a longer repayment period. However, similarly to personal loans the longer the period the more overall interest you will pay, although the monthly payments will be less. A secured loan may be borrowed for up to 20 years whereas a personal loan is usually repaid within 5 years.
There will typically be low or no early repayment penalties on a secured loan making it ideal for short term funding and they are available on either a main home or a buy to let property.
As with any important financial decision, it is vital to seek professional advice.
Blackstone Financial Solutions work with specialists who are able to source a wide range of competitive secured loans and discuss your options.
Secured loans are arranged by introduction only.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
Call Blackstone now on Bristol 0117 403 0097 for further information and a quote tailored to your individual needs.
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