How are secured loans different to unsecured loans?
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Secured loans are tied to an asset such as your home, which acts as collateral. Unsecured loans are not tied to any asset, so they typically come with higher rates and lower borrowing limits.
What is needed for a secured loan?
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You will usually need proof of income, identification, and details of the property being used as security, along with information about any existing mortgage.
Can I apply with a bad credit history?
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Yes. Many lenders consider applicants with a poor or limited credit history, as the loan is secured against your property.
Are there any early repayment charges on these products?
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Some products carry early repayment charges and others do not. The terms vary by lender and will be set out clearly before you proceed.
Can I take out a secured debt consolidation loan?
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Yes. Secured loans are often used to consolidate existing debts into a single monthly payment, though you should consider the total cost over the full term.
What credit score is needed for a secured loan?
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There is no single minimum score. Lenders assess affordability, equity in your property, and your wider circumstances rather than relying on a score alone.
Can I sell my house with a secured loan on it?
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Yes. The outstanding balance of the secured loan is repaid from the sale proceeds, in the same way an outstanding mortgage is settled on completion.
What is the max LTV?
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Maximum loan-to-value varies by lender and product, and depends on the equity available in your property. Higher LTV products are available with some lenders.
