- Loan-to-value ratio – the more equity you have in your property, the more you should be able to borrow.
- Your financial position – with a stable income, employment and good credit history, this should allow you to access cheap secured loan rates and maximise the amount you can borrow.
- Value of your property – if you have a valuable property, this could help you access a large sum and competitive rates
- Debt-to-income ratio – if you are not overloaded with other financial obligations in terms of credit cards and loans, this will help you get lower rates
- Beware the advertised APRC – this is only available to 51% of successful customers and your rates may vary depending on factors mentioned above
Product Features
- Borrow ?1,000 to ?1 million (or higher)
- Rates from 3.34% APRC
- Loan terms: 1 to 35 years
- 50% to 100% LTV available
What Are Types of www.rksloans.com/installment-loans-nj/ Secured Loans and What Are They Used For?
Homeowner loans – Most secured loans are taken out by homeowners who are looking to raise money against their property or home. This is usually known as a ‘second charge,’ since it is the second priority against your property after your first charge, which is your mortgage. This can be used to pay off bills, for gifting money to your relatives, debt consolidation or home improvements.
Secured Debt consolidation loans – This allows you to take all your existing financial obligations (such as credit cards, loans, student debt) and put them into one single, more convenient monthly repayment schedule, repaid over 1 to 30 years. You can borrow up to ?25,000 (or higher) and this is secured against your home.
Bridging loans – This is used by homeowners to bridge the gap between the purchase on one property and the next. Perhaps you cannot sell your property, but are keen to purchase another.
This type of loan allows you to receive the money upfront so you can buy the desired property and then you can repay the loan in full once the original property has been sold.
It is also commonly used by property developers to purchase properties at auction or under tight deadlines whilst avoiding property chains and long mortgage applications.
Second charge loans – This is where you borrow money against your home and it is the second charge from your bank account, after your mortgage takes the first charge or first priority of payment. The amount you can borrow from a second charge loan is a little less than your main mortgage, since the lender is now second in line when it comes to payments. However, you can still borrow quite a substantial amount – ?1,000 to ?1 million depending on the value of your property. This can be used for consolidating debts, home improvements, business purposes, holidays or school fees.
Equity release – Equity release allows you to unlock money that is currently tied up in your home. Targeted at the over 55 market, it refers to the ‘releasing of equity’ after you have been paying your mortgage for years and years and now own all or most of your property. You can use equity release to get a large sum of money upfront, which is tax-free and to continue living in your house.
You can typically choose to release anywhere between 20% to 90% of the value of your home, deciding to remain owner of the property (lifetime mortgage) or give up equity in the property (home reversion) until the lender recovers it when you die or go into long term care.
