Secured Loans
Compare secured loans with real interest rates.
Borrow money while using your home or property as collateral. Rates of interest for secured loans are usually lower as compared to unsecured loans because of the collateral involved.
Loans from £1,000 – £35,000
Borrow for 1 year to 7 years
Comparatively Lower Interest Rates
Compare Multiple Lenders with a Quick Search
Real Interest Rate
What is a Secured Loan?
These loans are also known as “homeowner loans” as they allow you to borrow money against your property. If you need a large sum of money and you have a poor credit report, you may consider taking out a secured loan.
However, you should understand the risks associated with a secured loan before borrowing. When you apply for a secured loan, the lender will ask you to offer your home as collateral. If you fail to repay the loan on time, the lender has the right to possess your property and resell it for loan recovery amount.
As you put your home as security, lenders consider you as a less risky borrower. For this reason, the rates of interest on these loans are comparatively lower. Secured loans allow you to access a large sum of money and as the process is completely online, it will not take much time for you to get the required funds.
Reasons to Borrow a Secured Loan
Potentially lower rates of interest as you use your property as security for the loan.
Chances of getting approved for the loan is higher if you have a bad credit score.
Upon timely repayments, you can build or rebuild your credit score.
Repay the loan in fixed monthly instalments. It will help you to maintain your monthly budget.
Things to Consider Before Borrowing a Secured Loan
Your property, or asset, is used by the lender as security so that they can sell the property it if you do not keep up with the repayments. Due to this security, the loans are relatively low in interest and it is normally easy to qualify if you own a property.
Lenders take into account a number of factors when looking at secured loan applications. These include the value of your home, your income, your personal credit score and any existing debts.
The rates can be fixed or variable depending on the type of loan you opt for. It is better if you choose a loan that allows you to make fixed monthly repayments every month. As long as the repayments are made in full each month, you will not lose your home.
If you default on the loan, your home may be at risk of being repossessed. This means the lender can sell your property to recover the money that is owed. Ensure your repayment plan before taking the loan as your property will be at stake.
Alternatives to Secured Loans
If you are struggling to get access to money and you do not own an asset or property, there are various other financing options that you may consider. A secured loan is the best option for those people who need a large sum of money, who own a property and who can afford to repay all the repayments on time to avoid repossession of their property.
Peer to Peer financing option is one of the most popular ways of borrowing money. Generally, the P2P websites that act as a marketplace bring together people and businesses for the entire process. You can get a loan without visiting the bank as all you have to do is open an account with the P2P lender so that they can transfer the funds to you.
You can opt for an unsecured personal loan as you do not have to provide any collateral for the loan. Also, you can spread the cost of repayment over several months. When you borrow a personal loan, your property or asset will not be at stake, however, your credit score will be damaged if you do not repay the loan on time.
Credit cards are also a big relief when you have to manage unexpected expenses. There are interest-free credit cards that you can use. However, the rate of interest charged on credit cards is high and ay quickly spiral if you do not repay it within time. It also impacts your credit score.
Why Should You Apply With Us?
Warning: Late repayment can cause you serious money problems. For more information, go to MONEYADVICESERVICE.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.
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.
FAQs on Secured Loans
We have answered almost every question related to secured loan that are frequently asked. If you do not find something, please contact us.
Why are interest rates lower for secured loans?
Lenders offer a lower interest rate on secured loans because they have the security of your property if you do not repay the debt. This means they are happier to reduce the interest rate because there is less risk for the lender.
Can I apply for a secured loan if my credit history isn’t good?
Yes, which is good news for those with poor or no credit history. The interest rates are lower, lenders will offer this loan to those with poor credit due to the security of your home.
Can I lose my home with a secured loan?
Yes, your home could be at risk if you do not keep up with the monthly repayments. Lenders use your home as security in case you do not repay the debt. This means the lender can apply to the courts and force you to sell your property to get their money back.
I have a secured loan but I’m moving house – is this a problem?
This isn’t necessarily an issue, though there are a few options that you may wish to consider. If you have enough money from the house sale, then you can potentially pay off the loan in one go. The other option would be to transfer the loan to the house you have bought. However, not all lenders will allow this and it is worth double-checking first.
Do I need to provide a guarantor for this loan?
No, you do not. Your home is the security for this loan.
Is LoanTube authorised to lend me money?
We normally get back to you within just a few seconds. Every now and again, a lender who is interested in working with you might need to ask you some additional questions after receiving a provisional offer to confirm it. Please be aware that the lender may alter or withdraw the offer of a tenant loan depending on the answers you share with them.
How do you know which companies will lend me money and which ones will not?
When we become partners with a lender, one of the first things they do is to send us a list of the types of borrowers they would like to work with. You might be just the type of borrower one lender is looking for but another might not consider you. Our job is to pair you with the right lenders based on the information you give us.
If I get an offer, do I have to take the loan?
No. You’re never under any obligation to accept an offer that you receive from LoanTube. Even if we say “yes” then you turn around and tell us “no”, there’s no charge for our service.
Representative APR Example
The rate you are offered will depend on your individual circumstances.
Representative APR Example: On an assumed loan amount of £2,600.00 over 36 months. Rate of interest 41% per annum (fixed). Representative 49.7% APR. Total amount payable £4,557.89 of which £1,957.89 is interest. 35 monthly repayments of £126.61 and a final payment of £126.54
