Everything You Should Know About Second Charge Loans

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Secured Loan Expert is a trading name of First Union Mortgages Limited one of the largest and most trusted finance brokers in the UK.

We specialise in finding the best loans for our clients from probably the biggest selection of loan deals in the UK with over 950 different deals available at any one time. We will match your requirements with all the deals on offer, ensure that you are aware of all the costs of each individual loan before you chose to apply. We will make the application on your behalf ensuring that your case is seen by the lender in the most favourable light.

Our experts are there to ensure you get the best deal and what’s more our help and advice is free so why not take advantage of our expertise.

A homeowner loan is a personal loan taken out against the equity in your property. Also known as secured loans, these are offered in exchange for you offering your home as collateral. Securing the loan with your home enables you to borrow substantial amounts of money for long periods. Moreover, because the lender puts a charge on your home as security, it offers very good interest rates and manageable terms.

Currently you can borrow up to the maximum limit of 95% of the equity in your home.

- You can obtain a homeowner loan by first comparing the deals in our simple comparison engine and choosing the deal that suits you most. Pay attention to the minimum and maximum loan amounts offered by each deal, as this will play a role in your decision making. When you have found the most suitable loan offer just contact our friendly team of experts who will answer all of your questions, help you with your application, get pre approval from the lender, and if required arrange for a valuation of your home whilst keeping you up to date throughout the approval process until completion.

It is still possible to get a secured loan when you are self-employed. This will be dependent on your personal circumstances and each lenders’ criteria. Our team can advise you as to the exact requirements when you call us.

At Secured Loan Expert all types of credit history are considered. The decision to lend is subject to individual lender criteria and your personal circumstances. Our expert team can provide you with more information if this is the case.

No. The only note on your credit file that will exist when you make an initial enquiry will be a Quotation Search which will only be visible to you and not by other searchers.

When you make a full application then a full search will be undertaken which will show up on your file at that stage. This will be visible to other lenders.

While this process is a lot shorter than a mortgage or re-mortgage application, the exact length of time from application to you receiving the funds depends on the amount of the loan required, the loan amount to the asset value, the lender chosen and your individual circumstances.

Once the loan is approved by the lender, they will transfer the money to you typically within 48 hours if electronic transfer is the payment method.

There are no upfront fees to pay.

All fees and charges that you have to pay to take out a loan will be fully detailed to you before you make any decision to go ahead.

If you have any questions at this point just call our friendly team who will be happy to help you understand what fees may be charged.

By Michelle Tuvey.

Loan Underwriter

Owning a home not only provides you with a place to live, it also affords you something that you can use as a financing tool. For example, second charge loans can be taken out against the current value of your property in order to pay for home improvements, retire higher interest debt, pay for a wedding, and so on.

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Also known as a secured loan or homeowner loan, the second charge loan is so named because the lender puts a second charge on your property behind the primary mortgage company. Should your home be repossessed and sold for whatever reason, the primary mortgage holder would be paid off first. The holder of the second charge would receive any funds remaining.

Your Home as Collateral

As attractive as secured loans are, consumers need to understand that they are putting up their homes as collateral. This means that you are using the equity in your home as a guarantee that the money you borrow will be repaid. In the event of default, you would still be required to repay any balance not covered by the sale of your property.

The upside to this scenario is that secured loans tend to have lower interest rates as compared to unsecured loans. While you might be paying 12% or more on a credit card, secured loans are offered at substantially lower rates. Banks are willing to do this because of the collateral you provide.

Comparing Multiple Lenders

You should by all means use our website to compare multiple lenders and loan products. It goes without saying that shopping for the best loan is as important as shopping for car insurance, mobile phone plans, and energy. Here's what you should be looking at during your comparison:

  • Annual Percentage Rate – Most of us are familiar with the annual percentage rate (APR). This is the amount of interest paid annually on the outstanding balance of a loan. The lower the APR, the better it is for you.
  • Representative APR – The representative APR is not the same as the standard APR. Representative APR is a combination of interest and the known, upfront cost of borrowing – including bank fees and charges. This number gives you a more accurate picture of the total cost of borrowing.
  • LTV Ratio – Lenders use something known as the loan-to-value (LTV) ratio to help determine how much a person can borrow. Whatever this number is represents the percentage of your equity you are able to borrow against. An 80% LTV ratio means you can borrow up to 80% of the total equity in your home.
  • Loan Terms – The loan term is the amount of time you have to repay what you borrowed. Secured loans typically have terms between 5 and 25 years. Keep in mind the longer-term incurs more interest, even if it does have lower monthly payments.

New MMR rules require banks to be very strict in determining eligibility and affordability for secured loans. Be prepared to answer a lot of questions and provide a lot of information before being approved for a loan.

Using Your Money

If you are approved for a secured loan, you will have a substantial amount of money that you can use for various purposes. You might consolidate all of your credit cards and personal loans for the purposes of better budget management. You might use the money to add on to your home or make the necessary improvements. You might even decide to take a holiday.

Regardless of what you use the money for, second charge loans are very versatile financing tools that let you take advantage of the equity value in your property. Their affordability and easy accessibility make them very popular among UK homeowners with established equity.

If you would like some help if finding the best loan deal to suit your individual circumstances, assistance in comparing loan offers or need our expertise to create and submit an optimised application to ensure the lender reviews your case in the best possible manner just call our friendly team today.

Remember we work for you, not the lender, so your needs are always at the forefront of everything we do.

Call Us For FREE Expert Advice and the Latest Rates.

We source the best rates from the whole market

  • Borrow up to £2,500,000 Depending on the Equity in Your House.
  • Adjustable Repayment Terms from 3 to 30 years.
  • Secured Loans Can Be Used for Almost any Purpose.
  • Low Interest Rates.
  • Rapid Approval - Low Arrangement Fees.
  • Options for Homeowners with Bad Credit History.
We Will Find You the Best Secured Loan to Suit Your Individual Needs.

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