Before applying for a secured loan, we strongly advise using our exclusive secured loan calculator for an overview of the options available. This will enable you to build a clearer picture of your repayment obligations if you choose to go ahead with a secured loan application.
Accessing a competitive secured loan for any purpose is as simple as following the basic six-step process:
Step 1 – Check Your Credit Report
While some secured loan specialists welcome poor-credits applicants, it is still a good idea to check your credit report and understand your credit status. Just as a good credit score often makes it easier to qualify for a competitive deal, poor credit can limit the number of lenders that are willing to work with you. This is important to ensure that your applications are directed exclusively at appropriate lenders.
Step 2 – Assess the Value of Your Assets
Most secured loans are secured against property; residential or commercial, however, some lenders are willing to consider other assets of value when issuing secured loans. This is something to discuss with your broker at the earliest possible stage, in order to ensure that your assets have sufficient combined value to cover the costs of the loan. You will also be expected to arrange a formal valuation of any property you intend to use as security, performed by a surveyor approved by the lender.
Step 3 – Compare as Many Options as Possible
Comparing the market for secured loans is impossible without the support of an independent broker. Many of the UK’s leading specialist lenders offer their products exclusively via brokers and do not work with the public directly. An established and experienced broker will compare the market in its entirety on your behalf, helping you find a competitive deal to suit your requirements and your budget.
Step 4 – Conduct Careful Calculations
Assessing the affordability of a secured loan means reviewing all applicable borrowing costs for the life of the loan. Our secured loan calculator will help you build a picture of your repayment obligations, though it is advisable to discuss all supplementary fees and costs with a broker before applying. Interest rates and borrowing costs vary significantly from one lender to the next.
Step 5 – Consider and Reconsider Your Requirements
Borrow too little and you may find yourself in a position where you need a second loan to supplement your original loan. Similarly, borrow too much and you may struggle to meet your repayment obligations over the long-term. Question carefully how much you need to borrow and try to avoid borrowing more or less than you genuinely need.
Step 6 – Complete the Application Process
The final step in the process is to complete and submit your secured loan application, along with all supplementary documentation and evidence required. The support of an independent broker is likely to prove invaluable at this stage, ensuring your case is presented as strongly as possible and avoiding delays by getting the job done properly first time.
For more information on any aspect of secured lending or to discuss your requirements in more detail, contact a member of the team at UK Property Finance today.