What is a Secured Loan?

A secured loan is a second charge on your home. This means that the secured loan lender stands in second place behind your mortgage lender in the event that you default repaying your loan commitments and your home is repossessed. To reflect the increased risk, secured loan interest rates tend to be higher than those for mortgage.

There are several good reasons why a secured loan may suit your circumstances and could be worth considering as an alternative to a remortgage:

• You may have experienced recent financial difficulties and want to raise some extra cash. If you already have a competitive rate with an existing high street lender, a new mortgage at this time could mean you pay a higher rate of interest on the entire loan.
• Secured loans are generally for amounts between £5,000 and £100,000.
• You may have taken a new mortgage recently but now need to raise more money. Changing from your existing mortgage provider may mean that you will have to pay early repayment charges.
• You may want to take a loan over a different period to your main mortgage.
• A secured loan doesn't usually require complicated legal transfers or full valuations.

Call Debt Advisory Line today on 0844 875 9190.

Debt Advisory Line is an introducer of Financial Advisory Line who are an appointed representative of Intrinsic Financial Planning Limited and Intrinsic Mortgage Planning Limited. They are authorised and regulated by the Financial Services Authority.

Your home may be repossessed if you do not keep up repayments on your mortgage