If you have an adverse credit history or a low credit score and are a homeowner then we can help find you a loan from the entire market place. We deal directy with lenders who offer loans to people who have been refused credit elsewhere with poor to fair credit ratings. Call us or request a call back today to get a quote or friendly advice.
Recent secured loan Q&A
What are the secured loan options for people with bad credit?
If you are in the position where you have a bad credit history but you need a loan then there are all sorts of options that are out there on the market. You have probably seen adverts for payday loans and guarantor loans, but these types of loans are only for temporary short term use and for borrowing small amounts over short periods of time. Although these loans are easier to get and faster, they are unlikely to be the best option for you to take if you require a larger loan repaid over the long term.
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Differences between secured and unsecured loans
The main difference between a secured homeowner loan and unsecured loans is that the loan you take out as an unsecured loan is not secured against anything. This means that these are a higher risk than for secured loans and therefore they attract much higher interest rates when compared. For a secured loan you take out the loan against something that you already own, which may be your car or which is most popular your home. A car can be used for small secured loans, e.g. logbook loans, but if you are attempting to consolidate a large amount of debt this is not going to be a viable option for you, therefore using your home as security may be the option for you, and hence the term homeowner loans.
Read: Secured loans explained
The pros and cons of using your home to take out a secured loan
The biggest pro of taking out a loan in this way is that you will actually pay less interest than any other loan method, particularly on large amounts. You also get the advantage of being able to pay back your loan over a longer term. The down side to this is that you are probably going to pay back more in the long run, but the plus side is that your monthly repayment are likely to be more manageable and so you will be able to make your payments successfully each month rather than struggling to try and make multiple individual loan payments each month. Unsecured loans are generally for amounts between £1000 – £15,000 while secured loan can be for much higher amounts and can be repaid for up to 30 years.
Do some calculations before you dive into a secured loan
While taking out a secured loan might be the only way you are going to be able to consolidate your debts into something manageable you should still do some preparatory calculations on how much you will be repaying each month as you will need to make sure that it is affordable for you. The reason you should approach this type of loan with caution is because you are securing it against your home and should you default on your payments your home could be at risk. You will also need to look at what will happen to your payments if interest rates go up to see if they will still be affordable.
Consolidating your debts, especially with a poor credit rating, is not an easy thing to do and there are plenty of people around who can help you to find the best option for you. If you need a short term loan then a secured loan against your home is not going to give you the best deal, but if you need to borrow a large amount and need to repay it over a longer term in order to may your repayments affordable then this type of loan will offer you what you need, even if you do end up repaying more in the long term.
Make the most of any free debt advisory services you can, but did you know that you can also get advice from specialist bad credit mortgage brokers who can find all of the options that you have available to you? Doing an internet search for bad credit secured loans will get you some basic information, but as specialist mortgage and secured loan brokers work with these products all the time they will be able to find everything on the market that may be suitable for you, and it is highly likely that they will find options for you that you wouldn’t find yourself. This is because not all adverse credit secured loans are advertised on popular search sites and so it requires a specialist to make sure they have all been found. Something else you should know is that many brokers work on commission and so you will not have to pay for their services. Not only that, a broker will help you to complete your application and can also help to improve your chances of being accepted for the loan as they can sometimes help to influence a lender in their decision and can also chase up the application and give you updates if it seems to be progressing slowly.
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