Secured lending

[JustDerv]

Hi all,

Just after some advice from any savvy finance people out there. Long and short is that I own my house outright, need to borrow some money to make some improvements. Thought it would be straightforward to obtain a loan secured on the property - like a homeowner loan, but all the Building Societies I've checked only do these kinds of loans for existing mortgage customers.

Googling brings up these companies that do secured loans for poor credit etc. like Norton and Freedom. Ideally I'm looking for about £15K, repayable over 7 years or so, and want no more than £250 per month if possible?

Really my question is, is it possible to get a secured loan at a decent interest rate, or would I have to get a small mortgage? Any ideas, as I am not really an expert on the different lending options.

Thanks

[Sarnie]

JustDerv said:

Hi all,

Just after some advice from any savvy finance people out there. Long and short is that I own my house outright, need to borrow some money to make some improvements. Thought it would be straightforward to obtain a loan secured on the property - like a homeowner loan, but all the Building Societies I've checked only do these kinds of loans for existing mortgage customers.

Googling brings up these companies that do secured loans for poor credit etc. like Norton and Freedom. Ideally I'm looking for about £15K, repayable over 7 years or so, and want no more than £250 per month if possible?

Really my question is, is it possible to get a secured loan at a decent interest rate, or would I have to get a small mortgage? Any ideas, as I am not really an expert on the different lending options.

Thanks

A secured loan is just the same as a mortgage.

Most lenders will have minimum lending amount, which is where you may be falling foul of criteria.

Drop me a mail if you need some help.

[saleen836]

Can you not just get an unsecured loan for that amount?

[JustDerv]

saleen836 said:

Can you not just get an unsecured loan for that amount?

No, not at a rate comparable to a mortgage rate.

[JustDerv]

Sarnie said:

A secured loan is just the same as a mortgage.

Most lenders will have minimum lending amount, which is where you may be falling foul of criteria.

Drop me a mail if you need some help.

Mail sent thanks.

Iain

[JustDerv]

JustDerv said:

Mail sent thanks.

Iain

Hi, sent you another email as the original email address doesn't work.

[Sarnie]

JustDerv said:

Hi, sent you another email as the original email address doesn't work.

Got it and replied to!

[johnfm]

JustDerv said:

saleen836 said:

Can you not just get an unsecured loan for that amount?

No, not at a rate comparable to a mortgage rate.

There will probably be setup fees to consider at both ends of a secured loan.

If you include these in your figures, how much cheaper is the secured loan v unsecured?

Maybe get a credit card (or cards) with a reasonable limit on it, then play the balance transfer game to keep it at 0% until paid off.

[Pot Bellied Fool]

JustDerv said:

Hi all,

Just after some advice from any savvy finance people out there. Long and short is that I own my house outright, need to borrow some money to make some improvements. Thought it would be straightforward to obtain a loan secured on the property - like a homeowner loan, but all the Building Societies I've checked only do these kinds of loans for existing mortgage customers.

Problem with walking in off the High Street is that the High St lenders expect certain boxes to be ticked. Talk to a specialist who can access other deals directly & you'll get something sorted no problem I'd expect.

Plrnty of PHers involved in Finance or a mate of mine does mortgages & secured loan stuff. He knows his onions & will be happy to give advice.

[JustDerv]

Thanks. I suspect you're right about the high street, that's why I asked on here. All credit to Sarnie who's helping to get me sorted.