We have 2 deals or avenues of investigation for you if you’re looking for a collateral loan. If It’s jewellery you have then we suggest a pawn broker and if it’s any other type of item other than property, it’s another search engine query. Collateral loans can also be known as secured loans.
So, if your collateral or asset is your home then you have come to the right place!
Please be mindful the following 2 deals are for HOMEOWNERS ONLY:
Firstly: we have access to almost every type of secured loan product in the UK via secured lending partner. Your house will be used as security for the loan whether it’s for home improvements or buying a yacht. You don’t have to live in the property or even own it outright, as long as you own it the property is the collateral. To access their loans click this link.
You can borrow up to £500,000 for up to 25 years. You can have bad credit in the form of satisfied CCJs. Been in an IVA? No problem, they will look at your circumstances first. Been bankrupt? As long as you exited the bankruptcy over 3 years ago they will look at lending to you.
Deal Number 2:
The second deal we have is via our other partner who is a direct lender. They who will do a homeowner loan which is UNSECURED. That means if you default on the payments your home will not be taken from you. Essentially they are offering a collateral loan with NO collateral! Your ownership of your property is the collateral WITHOUT your home being put up as security. Good eh? Apply via the links. The only drawbacks are you can’t borrow as much as with Deal 1 (£20k not £500k) and you can only borrow up to 10 years.
Borrow between £3,000-£20,000 over 36-120 months or to put it another way you can borrow the money from between 3 and 10 years (subject to loan value). The Representative APR for this deal is 26.9%. Go to the link here: Unsecured Loans for Homeowners
Remember that one of the biggest advantages of this loan is that it’s unsecured. That means if for whatever reason you can’t repay the loan, you will not have your home repossessed as a result. You might pay slightly more for this loan as it is unsecured but what price the safety of knowing your home is not at risk if you can’t keep up the repayments?
Useful Collateral Loan Information
All of the information below is purely for information purposes only and we cannot help you with any other types of loans against anything other than a property. However, the info below is relevant to collateral loans from other brokers and lenders so we felt it best to leave it there so you have more than one opinion to cross-check.
Key Features
- Borrow up to £500,000
- Repay over 1 to 25 years
- Use collateral to borrow money
- No guarantor required
- Bad Credit Accepted
What Can I Use for Collateral Loans?
- Houses and flats, property
Types of Collateral Loans
- Debt consolidation loans
- Homeowner loans
- Second charge loans
- Secured loans
What is the Eligibility for a Collateral Loan?
- Over 18 years of age
- Full-time UK resident
- Can provide proof of ownership
- Employed and earning a regular income
- Able to afford repayments
What Information Do I Need to Apply?
When you apply for a collateral loan, you will usually undergo a few more checks than a regular unsecured loan. This is because you will need to provide proof of ownership of the collateral. A land registry check will usually be performed.
If it is a property, the lender will need to verify your ownership and you may need to provide recent utility bills. The lender will organise a chartered surveyor to provide an up-to-date valuation of your property too.
How Much Can I Borrow with Collateral Loans?
The amount you can borrow with collateral will depend on the value of your property. If you are looking to use a property, it will depend on how much equity you have. Your outstanding mortgage balance is deducted from your home’s value to get the equity figure. The rule is that the more you own of the property, the more you can borrow.
Will My Property Be Repossessed?
Yes, your property can be repossessed if you do not keep up with repayments. However, this only applies to loans which are secured against your home. In the example above and for our lender your home is not secured against the loan. This means it cannot be repossessed if you default. You will be required to make monthly repayments for your loan and the interest is usually quite low. This is because you have a valuable asset currently co-owned by the lender.
Repossession will incur costs for the lender (and possibly for you too). Where possible, the lender will always contact your first by email, as well as phone and letters before using repossession as a last resort.