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What is a Secured Loan?

Secured Loans | UK | LoanTube

A secured loan is a loan that you borrow against an asset that you own, generally your home. It is a great financing tool if you want to borrow a large sum of money for a long period. If you have a bad credit score, you will have a chance to improve it as the repayment period is generally longer. You may get lower interest rates as the loan will be secured on your asset.

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Loan Term
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Representative APR
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Representative APR
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Loan Amount

£4000 -

£20000

Norwich Trust

Loan Term

1 -

10 years

4.8/5

4.8/5

Representative APR

31.90%

Minimum Age

21 Years

Minimum Income

£2000 per month

Representative Example: £12,000 over 66 months, 31.9% APR fixed. Monthly payment £358.22 Annual interest rate 28.01% fixed. Interest payable £11,642.52. Total repayable £23,642.52.

4.8/5

4.8/5

Norwich Trust

Loan Amount

£4000 -

£20000

Loan Term

1 -

10 years

Representative APR

31.90%

Minimum Age

21 Years

Minimum Income

£2000 per month

Representative Example: £12,000 over 66 months, 31.9% APR fixed. Monthly payment £358.22 Annual interest rate 28.01% fixed. Interest payable £11,642.52. Total repayable £23,642.52.

Loan Amount

£5000 -

£100000

Evolution Money Loans

Loan Term

1 -

20 years

4.5/5

4.5/5

Representative APR

28.96%

Minimum Age

18 years

Minimum Income

Not mentioned

Representative Example: Loan Amount: £20950.00, Loan Term: 85 Months, Interest Rate: 23.00% PA Variable. Monthly Repayments: £537.44. Total Amount Repayable: £45,682.15. This example includes a Product Fee of £2,095.00 (10% of the loan amount) and a Lending Fee of £714.00

4.5/5

4.5/5

Evolution Money Loans

Loan Amount

£5000 -

£100000

Loan Term

1 -

20 years

Representative APR

28.96%

Minimum Age

18 years

Minimum Income

Not mentioned

Representative Example: Loan Amount: £20950.00, Loan Term: 85 Months, Interest Rate: 23.00% PA Variable. Monthly Repayments: £537.44. Total Amount Repayable: £45,682.15. This example includes a Product Fee of £2,095.00 (10% of the loan amount) and a Lending Fee of £714.00

Loan Amount

£1000 -

£10000

1Plus1 Guarantor Loans

Loan Term

1 -

5 years

4.4/5

4.4/5

Representative APR

39.90%

Minimum Age

18 years

Minimum Income

Not mentioned

Representative Example: Borrowing £3000 over 36 months with a representative APR of 39.9% (variable),the amount payable would be £134.21 a month,with a total cost of credit of £1831.56 and a total amount payable of £4831.56.

4.4/5

4.4/5

1Plus1 Guarantor Loans

Loan Amount

£1000 -

£10000

Loan Term

1 -

5 years

Representative APR

39.90%

Minimum Age

18 years

Minimum Income

Not mentioned

Representative Example: Borrowing £3000 over 36 months with a representative APR of 39.9% (variable),the amount payable would be £134.21 a month,with a total cost of credit of £1831.56 and a total amount payable of £4831.56.

How Does a Secured Loan Work?

You apply for a secured loan by filling an application form that has all the detail such as loan amount, duration and other necessary information. The lender will assess your loan application along with your credit report. If your loan application is accepted by the lender and if you agree to all the Terms & Conditions proposed by them, then you can expect the funds to be transferred within 1-2 days. The only difference in the way of working of these loans is the – collateral.

How quickly can I get a Secured Loan?

The process of applying for a loan has become quicker and easier than ever before. You will have to fill an application form and submit it online. It will take only a few minutes for the lenders to assess your profile and give their decisions. A few lenders claim that they will disburse the funds to your bank accounts on the very same day. However, the actual time it may take for the funds to reach your account also depends on your bank.

How much can you Borrow against your House?

To borrow a secured loan against your home, it needs to have available equity. Generally, lenders offer you to borrow from £3,000 to £10,000 or more. However, the actual amount that you can borrow depends on several factors:

  • Your income
  • Expenses
  • Credit score
  • Any existing commitment to credit
  • Amount of equity available
  • Loan duration
  • Loan amount

Different lenders have different lending criteria. Therefore, it cannot be said clearly how much amount you can borrow against your house. A proper evaluation is needed to know the loan amount you can borrow.

How many Secured Loans can you have on 1 Property?

You can get multiple secured loans on your property. However, it entirely depends on the amount of equity you have in your home. Another major factor that helps is securing multiple loans on your property is your income.

If you already have a loan on your property, and you are considering to take a new one, then the new lender will assess your profile to determine the chances. Post which, each existing lender will have to give their permission for a new loan that you are about to take on the same property. Remember that the interest rates for each subsequent loan will be getting higher than the last one.

As the loan is secured on your property, there is a risk that you may lose it. The lender may repossess your property and sale it to recover the money they owe to you. Therefore, keep up with all the repayments to avoid losing your asset. If you are not sure of the repayments, consider alternatives to secured loans. Talk to an expert if you find difficulty in assessing your financial conditions.

Representative 79.5% APR

Warning: Late repayment can cause you serious money problems. For more information, go to moneyhelper.org.uk

Credit subject to status & affordability assessment by Lenders.

LoanTube is a credit broker and not a lender.

Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on any debt secured against it.

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Representative APR Example

The rate you are offered will depend on your individual circumstances.

Representative APR Example: On an assumed loan amount of £1,000 over 18 months. Rate of interest 59.97% per annum (fixed). Representative 79.5% APR. Total amount payable £1,554.10 of which £554.10 is interest. 17 equal monthly repayments of £86.09, and the final month’s payment of £90.57.

Some of the offered loans might be classed as High Cost Short Term Loans. APR rate starts from 18.22%. The maximum APR rate is 1721%, but you will get a personalised rate tailored to you. The minimum repayment term is 3 months, the maximum repayment term is 7 years. The minimum loan amount is £250 and the maximum loan amount is £35000.

Warning: Late repayment can cause you serious money problems. For more information, go to moneyhelper.org.uk

Credit subject to status & affordability assessment by Lenders.

LoanTube is a credit broker and not a lender.

Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on any debt secured against it.

Not all borrowers will qualify for a loan. The operator of this website does not engage in any direct consumer lending, we simply provide you a FREE loan brokering service. This means LoanTube does not charge customers a fee for using its introducer services, but it receives a commission from lenders or other brokers if a customer enters into a consumer credit agreement with them following an introduction by LoanTube.

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