A Guide to Secured Loans

If you’re looking to raise money to consolidate existing debt, make improvements to your home, buy a new car or caravan, in fact just about any purpose, there isn’t a simpler way to raise large sums than with a Secured Loan…

Why chose Loans Warehouse?

Whole of market access; there isn’t a Secured Loan lender we do not have access to. Just one application will find you the cheapest Secured Loan on the market.

Loans Warehouse has access to more Secured Loan products than Money Supermarket, with over 200 Secured Loan plans available.

Loans Warehouse is an award winning Secured Loan Brokerage, winning the myintroducer.com Best Secured Loan Broker award for the last two years – the only recognised award in our industry.

A dedicated team with combined experience of over 100 years in arranging Secured Loans for all types of customers.

We are Secured Loan specialists. We don’t offer Debt Management, IVA’s, Guarantor or Log-Book Loans, we just offer Secured Loans.

We don’t do hard sell. All our Secured Loans go through a cooling off period so from the day the loan is sold, the customer is left to consider their options without the broker initiating contact for the first 16 days.

Loans Warehouse is authorised and regulated by the Office of Fair Trading (OFT) and all our Secured Loans are regulated by the Consumer Credit Act.

Why chose a Secured Loan?

Everyone else has said no

Because you are using the equity in your property as security for the loan, you can borrow large amounts over longer terms even if you have a poor credit history.

An Unsecured Loan is too expensive as it’s over such a short term

Secured Loans can be over any term from 36 to 300 months

I’m looking to borrow more than your unsecured lenders have offered

You can raise any amount between £5,000 and £500,000

My mortgage rate is extremely low

If you are currently benefitting from a low rate mortgage, raising money through a remortgage could increase that rate. Secured Loans offer an alternative that would allow you to keep your existing low rate mortgage in place but still borrow large sums at rates from just 7.9%

I’m tied into a fixed rate on my existing mortgage

If you are currently tied into a fixed rate mortgage, borrowing extra funds from your existing lender or switching lenders with a remortgage would mean a large redemption penalty. A Secured Loan does not impact your mortgage so your fixed rate will carry on as it is and you will not be charged any redemption penalties.

My credit rating isn’t the best

Remortgages and unsecured loans only cater for one type of customer, those with a very good credit rating.

Secured Loans give options to a full spectrum of customers:

·        Rates from 7.9% for customers with excellent credit ratings

·        Rates from 8.9% for customers with mild adverse (missed payments on unsecured credit, maybe even a mortgage arrear)

·        Rates from 15.9% for customers with high levels of mortgage arrears, CCJs & defaults

Our highest rate is 30.9% which will only apply to customers who have severe credit problems, with unlimited mortgage arrears, CCJs & defaults accepted **

** The higher the adverse the lower the LTV; the customers with the highest levels of adverse will only be able to borrow up to 65% of the equity in their property

How do Secured Loan rates compare to my credit cards and other debts?

·        Barclaycard Platinum 17.5% APR

·        Tesco Clubcard Credit Card 16.9% - 21.9% APR

·        MBNA Visa 21.9% APR

·        Capital One Classic 34.94% APR

All figures taken from moneysupermarket website on 23^rd August 2011

Loans Warehouse Secured Loan rates start from 7.9% APR and our typical rate is just 15.9% APR - the same as the lowest credit card rate available on moneysupermarket.com.

Why is that better than a remortgage?

Most mortgages still come with a tie-in period and early settlement fees of up to 6% of the balance of the mortgage; this can run into £1000’s in the early years.

My income is too low for a remortgage

Remortgage lenders work on multiples of client’s annual income, usually restricted to 3 x a customers’ salary. Secured Loan lenders work on a completely different basis, using typical figures for ‘cost of living’ to calculate affordability.

There are several Secured Loan lenders who have no minimum income.

What if I already have a Secured Loan?

All Secured Loans only attract a very small redemption penalty, so shopping around for a cheaper loan is always a good idea. Recently especially secured loan rates have tumbled, in the last 6 months Secured Loan headline rates have dropped over 2%.

I am self-employed but I don’t have accounts

Several secured lenders will assess the income of a self-employed applicant solely by the income showing on the last few months’ bank statements and calculating it pro-rata

Can I clear my Secured Loan early?

Perhaps the biggest selling point of a Secured Loan over other forms of borrowing is that all Secured Loans can be settled at any point with just a single months’ interest as a penalty. Simply give the lender 30 days notice in writing of your intent to clear and you’ll just pay the balance outstanding at that point plus a months’ interest.

Can I fix my rates?

The choice is yours; different Secured Loan lenders will allow you to fix your repayments for either an initial period or the full term of the loan.

My income is made up from pensions and benefits

In addition to some form of private income, Secured Loan lenders accept most forms of income including tax credits, child benefit, state and private pensions, disability living allowance etc.

I need to raise money in a hurry

A Secured Loan can be arranged from start to finish within two weeks.

Summary of Secured Loans USPs

Here are some of the main selling points of Secured Loans:

·        Borrow money for almost any legal purpose

·        Rates from 7.9% APR for employed and self-employed customers

·        Borrow money over longer terms, anything from 3 to 25 years

·        Loans from £5,000 to £500,000

·        Lending up to 85% LTV

·        No minimum income requirement

·        Most forms of income accepted including pensions and benefits

·        Adverse credit accepted inc. mortgage arrears, CCJs & defaults

·        Fixed repayments

·        Low redemption penalties

All data correct as of 31/08/2011