Secured Loans

New changes to the Consumer Credit Act make secured loans more attractive.

The new changes mean that all secured loans for residential purposes of any size come under the Consumer Credit Act and therefore every loan has a cooling off period and early repayment charges are a maximum of two months interest depending on what point in the current month the loan is redeemed.

What is a secured Loan?
Secured loans are loans secured on property, in much the same way as a mortgage. Secured loans require no upfront survey, legal or other fees. Loans are available for any purpose: debt consolidation, the purchase of a new car, home improvement, holidays, anything you choose.

To qualify for a loan you must be over 18, resident in the UK and a homeowner. We have special schemes available for those requiring a self certification facility that can go up to 90% of property value. There are also many schemes available for those that have had credit problems in the past and those that have already been declined for a loan elsewhere. We also have schemes available for those with a good financial track record; we can offer highly competitive rates to these types of borrowers that are often more competitive than you would imagine.

Do you require funds in 2-3 weeks?

Do you have heavy redemption penalties on your existing mortgages?

Have you been declined for further advances on your mortgage?

Do you have a very competitive mortgage in place which you want to keep?

Do you have arrears or other poor credit and you want to avoid remortgaging to a

‘sub-prime’ lender?

If you answer yes to any of the above then a secured loan may be suitable for you.

When is a secured loan suitable for you?

When a Remortgage might be inappropriate.

A remortgage is not always an appropriate recommendation, as you may want to keep further borrowing secured on the property separate from the main mortgage account. There might be a number of good reasons. For example, there could be a large redemption penalty when remortgaging, or you may have secured a fixed rate in the past that is still highly competitive compared to current interest rates. By using a secured loan, the redemption penalties are avoided and the current fixed rate will be protected, as the original first mortgage will remain in place.

When you want to repay the loan more quickly than your mortgage.

If you want to consolidate debt then a mortgage can work fine. However, if you are likely to want to repay earlier than your existing mortgage term, a secured loan can select a realistic timescale to repay the loan, and the original mortgage can stay in place for the selected term.

When your circumstances have changed.

Many people’s circumstances change after arranging a mortgage. If you no longer fit normal mortgage income multiples, or have had some credit problems since taking your mortgage, you might have to pay a high price for the new mortgage, whereas a secured loan can mean receiving the funds you need without losing the prime rate you have on your existing mortgage.

When you need to have the funds quickly.

Secured loans can be processed from initial enquiry to completion a lot quicker than a traditional first charge mortgage. Depending on the loan amount, your case could be completed and paid out in 2 to 3 weeks. This can be advantageous if you want to raise funds quickly. Secured loans can be used for many different purposes. Typically, if the purpose is legal then the loan can be processed. Many first charge lenders can be difficult when it comes to the purpose of refinancing.

When you need Flexibility.

Whether your loan requirements are large or small we can help. We can arrange loans of any size; typically ranging from £5,000 to £500,000. Please ask for further details with regard to smaller, or larger loan amounts. You can opt to repay the loan on a traditional repayment basis or, for more flexibility, an interest only option is often available. We have a varied panel of lenders with products to suit all circumstances. If you have a case that you would like to discuss in principle, please call 0800 043 3469 or email loans@reservoir-finance.com

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR OTHER LOANS SECURED ON IT. MISSING PAYMENTS WILL HAVE SEVERE CONSEQUENCES AND MAY MAKE OBTAINING CREDIT MORE DIFFICULT IN THE FUTURE.

Low rates from 7.7% APR. The overall cost for comparison is 13.34% APR typical variable. Over 66% of our customers receive a lower APR than the typical rate shown. Our highest rate is 27.6% APR Variable

Licensed Credit Broker Consumer Credit License Number 528084. Appointed representative through The Independent Mortgage consultancy Ltd. FSA number 409799.