Fast Approval - Low Cost Loans Secured on Property

Alex Parsons Alex Parsons | Secured Loan Expert

If you own a home, you have something you can use to secure a low-cost loan that can be used to cover nearly any financial need. Through loans secured on property you own, you can pay for home renovations and repairs, emergency expenses, or even the start-up costs associated with a new business. You are limited only by the equity in your home and your ability to repay.

Lenders are more than happy to loan money against residential property when that property is used as collateral. What is collateral? It is tangible property the borrower uses as security for the money loaned. The borrower is essentially agreeing to allow the lender to repossess the property and sell it if the loan goes into default.

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When you apply for a secured homeowner loan, you are using your home as collateral. The lender agrees to lend you money while you, in return, allow them to put a second charge on your property. Should you fail to repay your loan as agreed, the lender can repossess your home. As the holder of the second charge, the lender would get any proceeds left after your mortgage has been satisfied. If that were not enough to cover the amount you borrowed, you would still be responsible for paying the balance.

Obtaining a Loan

As long as you understand the risks, loans secured on property are a great financial tool. It allows you to put the equity in your home to work for other purposes. What's more, many lenders offer fast approval enabling you to get the money you need in a matter of days. In some cases, you can even get a preliminary decision in just minutes.

The process begins by comparing different lenders and their loan products. The fastest way to do that is by using our whole of market comparison tables. Our comparison tables bring all of the necessary information you need to compare into a single, well-organised space. You can compare interest rates, LTV ratios, and more.

Actually applying for a loan will differ from one lender to another. Most allow online applications, at least for the purposes of reaching a preliminary decision. You may have to fill out additional paperwork after preliminary approval is given. A lender not offering online application will let you apply in person or over the phone.

Keep in mind that a quick preliminary decision is not a guaranteed loan offer. You still have to go through a lengthier review process before a final decision is reached. The fastest lenders can complete this process in under 24 hours.

Low-Cost Loans

Getting the money you need fast is just one part of the equation. You also need to consider how much a loan will cost you over its lifetime. This requires considering all of the upfront costs in addition to the standard APR. Fortunately, the entire cost of a loan is quantified in the representative APR. This number is one of the most important things you will be looking at during the comparison process.

Low-cost loans are those with lower upfront costs for things such as administrative fees and home appraisals. Lenders might charge lower fees to be competitive, or simply absorb the fees themselves. In either case, fewer upfront costs mean you will spend less to borrow.

Make sure you take the time to compare representative APRs among multiple lenders. Just as with car insurance, you increase the likelihood of getting the best deal by comparing as many lenders as you can. The fewer you compare, the fewer choices you will have.

Fast, low-cost loans secured on property allow British homeowners to leverage equity for long-term funding. A secured loan allows you to borrow substantial amounts of money over long periods, for nearly any purpose. You should look into it if you own your own home.

If you are struggling with finding the right lender, unable to fathom what the best deal is for your individual circumstances or just don’t have the time to do the research why not call our friendly team of experts. The advice they provide is confidential and free and they will gladly help you to compare all the deals available from the whole of the market and even submit an optimised application to the lender on your behalf. Our experts are completely transparent in terms of any costs you may incur and will inform you of any charges before you make a decision to proceed.

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