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WHAT WE DO

We Gather Information Required to Search the Market

We gather some basic information about you using our quick online form

Conduct a Whole of the Market Comparision

We will search 100’s of providers to find you the lenders who are willing to approve your mortgage

Provide full service through to completion

We will show you rates along with the monthly repayments. This will not affect your credit score. We’ll also explain any fees if you progress at this point and as long as you are happy to proceed, provide you with the full service through to completion of your mortgage being accepted

SECURED LOAN LENDERS

(not all lenders displayed - not specific to your personal circumstances)

Customer Reviews

FREQUENTLY ASKED QUESTIONS

How we work?
By making an enquiry we will contact you to discuss your needs and outline if we can be of assistance. We will then request a copy of your credit file and this will be passed to a qualified adviser to review and give you advice and discuss possible quotations. If you wish us to proceed and get a ‘Decision in Principle’ we can do so. Once we have a decision from the lender we will discuss and email you a formal quotation and outline the process from there.
What is a homeowner loan?
This is a loan secured on your property as you are a homeowner. As the loan is secured upon the property lenders are more willing to provide cheaper rates when compared to unsecured loans and additionally can lend you more money over a longer term.
Can you get a secured loan with a bad credit history?
Yes. If you have had bad credit in the form of mortgage arrears, defaults, county court judgements, IVA and payday loans we have lenders that can help providing you have enough equity and can clearly afford any new borrowing.
How much can I borrow?
Secured loan lenders provide loans from £10,000 to £750,000. This depends upon your credit profile, equity in the property and affordability.
Why take out a secured loan rather than a remortgage?
We will always explore both options to ensure you get the right advice. Here are some reasons why a secured loan is more suitable, when compared to a remortgage:
  • Your main mortgage is at a low rate and any remortgage will be at a higher rate.
  • Your main mortgage has a large early repayment charge if you were to redeem this.
  • Your main mortgage has a long term left, whereas you want to borrow £XX over a shorter term to pay off quicker.
  • Your credit profile may mean a remortgage is not possible.
I have been declined in the past – can you help?
The key to this question is why you were declined. We provide an advised service, so if we cannot help you now we will explain why and provide advice as to what you need to do to be able to get a loan in the future.
How quickly can I get a secured loan?
Typical completion time from application is between 4 – 6 weeks.
What loan purposes do you accept?
Most legal purposes are allowed.

Secured Loans For People With Bad Credit


What is a secured loan?

Many of us have occasions during our lifetime when we need some financial support. If you cannot get a high enough balance on your credit card and a personal loan is not an option, then a secured loan may be useful and worth exploring.

Secured loans are effectively a loan secured on your property. A secured loan can be a way of getting a loan that may not otherwise be available to you and, in many circumstances, can be an acceptable way to raise some money for whatever reason. Secured loans are also known as homeowner loans, home loans or second-charge mortgages –and they allow you to borrow money while using your home as "security" (also known as "collateral"). It is important to note that that this means that the lender has the loan amount secured against your property and not against you personally. In the event of not paying the loan back they can forcibly sell your property to get their loan value back.

If you own an asset, such as a house or car, secured loans are one way that you may be able to borrow money. They are a common option for people who need a large loan (e.g. over £10,000); a loan over a longer term (e.g. over five years), or who are having trouble getting approval for a personal loan. However, secured loans carry the risk of losing your assets, so it is important to know the facts before committing to one.

Secured loans are easier to access than unsecured loans for the obvious reason that the loan is "secure" and the lender has minimal risk. It is often easier to borrow more using a secured loan. Unsecured or personal loans cap at circa £35,000 but unsecured loans can be up to £75,000 depending on your personal circumstances and equity in your property. Secured loans often span a longer period than secured loans, which suits the lender as this helps to offset the set up costs of the secured loan.


Who is eligible for a secured loan?

In the main, secured loans are meant for those who have been denied unsecured loans. When used correctly, they can help improve your credit score and credit history. Banks also like them because there is less risk involved. Lower interest rates are another advantage of choosing a secured loan.


What can a secured loan be used for?

A secured loan can be used for absolutely anything so long as it is within the law; for example, home improvements; debt consolidation; the financing of once-in-a-lifetime holidays; education fees; a wedding or any other type of celebration. These are just a few of the reasons that people apply for this type of credit. As long as you can pay the loan back and you have the required security, most lenders are completely indifferent as to why you are applying for finance but obviously you have to state what the money will be used for.


What are the advantages of secured loans?

  • It is possible to take out larger amounts. It can be difficult to borrow more than £25,000 with a personal loan but secured loans often go up to £100,000 or higher. For example, this may be useful for big home improvement projects or extensive education costs.

  • You can stretch the loan out for a longer period, making your monthly payments more affordable. Personal loans usually last for a maximum of six years, making it more difficult to afford the monthly payments on large loan.

  • Secured loans are usually easier to get approved for if you have poor credit or no credit history. This is because using your property as collateral lowers risk for the lender.

What are the disadvantages of secured loans?

  • There is significant risk - if you default on your payments, the lender can repossess your home to recover the debt. So, while it is called a secured loan, it is the lender rather than you who gets the security.

  • Getting a secured loan so that you have more time to pay back the debt may give you lower monthly repayments, but you are likely to pay more interest overall. This is because interest will be charged monthly - so the more months you have the loan for, the more interest payments you will make.

  • If you want to pay off your loan faster than originally agreed, you may be hit with early repayment fees.

Some people may take out a secured loan as a way of paying off debt. This decision is down to many factors and includes your personal financial situation, your ability to borrow and the amount of any debt that you are considering paying off with a secured loan. It is important of course to work out the cost of any debt versus the amount repayable under a secured loan agreement to see if you will be better or worse off.

If for some reason you default on your monthly repayments, a "default notice" will usually be recorded on your credit report, which will in turn lower your credit score and make it harder for you to borrow money and access certain services in the future.

Secured loans are available in a variety of guises that include short term fixed rate secured loans, where you pay a fixed amount for the initial period of the loan which then reverts to a variable rate. There are also fixed term secured loans where you pay a set amount monthly then at the end of the agreement the loan is paid in full via the monthly instalments.

Variable rate secured loan track Bank of England base rate and as interest rates move up or down the repayment is adjusted accordingly.

Secured loans can be a good solution for many people who are aware of the outcomes should they for whatever reason default on the loan. Here at The Money Hub we are able to offer impartial advice on secured loans, their potential suitability for your requirements and can search out the best lenders and loan deals for your secured loan.


Applying for loans

If you apply for multiple loans within a short period and are continually rejected then most lenders will be somewhat suspicious of your behaviour and reluctant to deal with you. However, when you apply for a secured borrowing product we carry out a soft credit check, which although recorded on your file, should not be visible to other lenders. Of course, once you are approved and decide to proceed with your secured loan, the information will be officially registered and available to anyone looking at your file.

If you are approved for a secured loan and you intend to settle the balance as quickly as possible, then it is always a good idea to let us know beforehand so that we can find the most suitable product based on your individual needs and requirements. Most lenders have early repayment charges that are equivalent to 8 weeks of interest on the remaining balance at the time of repayment. However, the actual rates can vary considerably from one lender to the next.

When you apply for a secured loan, the lender will look at how much equity you have in your property. This is essentially the difference between how much your home is worth and how much you still owe on the mortgage. This information gives the lender an idea of how much money they could recover from selling your home if you are unable to repay them. Typically, the more equity you have, the more you will be able to borrow.


Interest rates

Most secured loans have a variable rate, and you should factor in the possibility of rate rises when you are working out what you can afford. It is also useful to use APRC to compare secured loans - this is the interest rate plus any mandatory fees, so it can give you a better idea of the full cost of the loan. However, it is important to remember that the advertised rate is not necessarily what you will get. The rate you are offered may depend on how much you want to borrow, how long for, your credit score, and the value of your collateral.

APR stands for ‘annual percentage rate’. This is what your borrowing will cost you each year and includes interest as well as any other standard charges, such as arrangement or admin fees.

So, for example, while interest on a loan might be 5%, the APR might be 8% because it includes the other charges.


Payments

It is absolutely critical that you make all payments on time and in full in order to avoid losing your home and damaging your credit score. It is always advisable to set up a direct debit so that you never forget to make a payment. It is essential that you regularly check your bank balance and manage your budget so that you always know you have enough funds to cover your financial commitments.

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