Secured loan advice

Secured loan lenders

Secured loans are fairly widespread in their availability. However, you’ll typically find that lenders offering these loans will be specific providers in the sector.

This however, does not mean your lending is any more at risk, nor that you will be treated in any different way. These specialist lenders are still regulated by the Financial Conduct Authority (FCA) and must abide by the same regulatory rules as typical providers.

It is also worthwhile pointing out that your obligations will also remain the same. This means your home or investment property being used as security are still at risk and can be repossessed should you not maintain your monthly payments.

Interest rates on secured loans

A secured loan is in many ways the same as a mortgage, aside of the fact that the provider is registering the loan as a second charge behind the main mortgage provider’s loan. This is why this type of lending is also sometimes referred to as a second charge loan.

The fact that the loan is being registered second in line, will invariably mean that the rate will be higher than that offered by a main mortgage provider.

However, this sector of the market has become more popular and the increase in availability has in turn driven competition. Therefore, there are better rates to be found every year.

As these loans are treated in the same manner as a standard mortgage you will still get the choices of the same products. You can expect to see product types like fixed rate, discounted or tracker variable rates.

Again, as with the main mortgage market, influencing factors will determine which rates are available to you. This includes the type of loan i.e. residential or Buy-to-Let, the loan to value (LTV) i.e. the more you wish to borrow against the value of your home the higher the rate will typically be. Your credit history will also be considered and therefore you can expect those with a good credit rating to be offered better rates.

Secured loan mortgage brokers

Whatever you are raising funds for, Just Mortgage Brokers has a team of specialist advisers with the skills and knowledge to source the right secured loan for you.

You’ll be allocated your own dedicated adviser who will guide you through the entire application process.
We’re confident you’ll be delighted with the individual service you receive, as we endeavour to find you the most suitable secured loan, tailored to your specific needs.

For the right-secured loans on and off the high street, look no further than Just Mortgage Brokers.

Buy-to-Let secured loans

Buy-to-Let market changes have affected mortgage criteria, leading to an increase in secured loans and improved borrowing opportunities for many individuals.

As a secured loan is still a form of finance using the property as security, the main criteria remains constant in that the rentable value of the property will determine the level of borrowing permitted. This is commonly referred to as the Interest Coverage Ratio or ICR.

Some secured loan providers are happy to also take an applicant’s personal income into consideration. This can sometimes enable a higher loan amount to be achieved.

Lenders are generally more flexible when it comes to the number of Buy-to-Let properties a borrower can have. This can be especially useful for portfolio customers and those looking to build the number of Buy-to-Lets they own.

Although not common practice by all secured loan providers, there are some that will consider finance for properties that are not initially in a rentable condition. These properties would not usually qualify for a standard Buy-to-Let loan at the outset.

Bridge to let finance could hold the key for these clients. This is where bridging finance is offered initially and then converted to a Buy-to-Let mortgage once the property has been completed.