Representative Example: Amount of credit: £500 for 12 months at £79.09 per month. Total amount repayable of £949.08. Interest: £449.08. Interest rate: 140% p.a. fixed*. 278% APR Representative. Rates between 9.9% APR and 1295% APR.
The amount you can borrow will depend on the value of your collateral and you will need to be the owner of the collateral that you use. Depending on the value of the item, you may be able to borrow £1,000 to £1 million and repaid over 1 to 25 years.
Badger Loans can help you find the best collateral loans, working with over 30 companies who specialise in secured loans. Simply click on ‘apply now’ and enter your details in less than 5 minutes to get a provisional quote. If successful, you can usually receive funds within 1 to 2 weeks.
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.
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.
For vehicles, you will need to show a logbook or documentation that shows that you are a registered keeper of the vehicle.
For items of jewellery or memorabilia, you may need to show proof of purchase or certificate of authenticity – which confirms that it is legitimate and not stolen.
The amount you can borrow with collateral will depend on the value of your asset and how much you own of it. If you are looking to use a property, it will depend on how much equity you have in the estate and your outstanding mortgage balance. The rule is that the more you own of the property, the more you can borrow.
For vehicles, collateral lenders will usually give up to 50% of the vehicle’s on the road value, provided that it is less than 7 years old.
Items of jewellery and art will be considered on an individual basis.
Yes, your valuable collateral can be repossessed if you do not keep up with repayments. You will be required to make monthly repayments for your loan and the interest is usually quite low, since you have a valuable asset currently co-owned by the lender.
However, if you have missed a number of repayments and the lender is struggling to recover their initial funds, your collateral may be ceased and re-sold by the lender in order to cover their costs.
Repossession will incur costs for the lender (and possibly for you too) – so where possible, the lender will always contact your first be email, phone and letters before using repossession as a last resort.
Badger Loans works closely with a number of specialist lenders that offer collateral loans. We do not charge any fees for using our service and applying will not impact your credit score.
We are passionately about helping customers find the best loans and rates for them and every application is no obligation.
To get a free quote, simply click on ‘apply now’ and enter your details to receive an initial quote. You can proceed with the lender of your choice and subject to further checks can usually receive funds within 1 to 2 weeks (or up to 4 weeks for property).