Secured Loan Information

If you have missed payment on your mortgage or have incurred a CCJ or poor credit rating, it makes sense to get a secured loan rather than remortgage.

Secured Loan or Remortgage?

A remortgage might be much more expensive if replacing your current mortgage with one that reflects the increased risk due to poor credit.

Speed of process

The average secured loan can be pay out within two to three weeks of application, however a remortgage, with the increased paperwork can take 6 weeks or more.

Early release penalties

Many secured loan of £25000 or less now carry only two months interest as a penalty. It is worth asking you financial advisor about the early redemption penalties for both a remortgage and a secured loan.

Fees and up front costs

Because of the way secured loans are put together by the lenders they normally carry no up front fees, unlike mortgages you would not be charged for valuation fees, legal fees, arrangement fees, booking or application fees, so while you may feel the rates are higher when you look at the figures you may end up paying less over all.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.