If you are a homeowner and looking to borrow a large sum of money, a secured loan might be a good option for you. Secured loans allow you to borrow by using your home as the security for your debt. These are a second loan on your property after your mortgage and are considered a good personal finance option, especially if you are looking for a loan but can’t get one from a bank due to a bad credit history.
Who can get a secured loan?
Secured loans – also known as ‘homeowner loans’ or ‘second charge loans’ – are predominantly aimed at homeowners who have a non-existent or bad credit rating and are unable to get a personal loan elsewhere. These loans also work well for homeowners who are looking to borrow significantly more than an unsecured or personal loan offers. Secured loans are considered lower risk for lenders, so allow you to borrow a much larger amount often at a lower interest rate.
Secured loans, however, can be considered a higher risk to borrowers than an ordinary bank loan as missed payments can result in the repossession of your home. If you do choose to go down this route you should ensure that you only borrow what you know you can realistically pay back each month.
If you are looking to borrow a smaller amount (less than £15,000) then a personal loan might be a safer option for you as you won’t run the risk of having your house reclaimed.
Your property may be repossessed if you do not keep up repayments on a mortgage, loan or any other debt secured on it.
Secured loans for bad credit
A secured loan gives you the opportunity to borrow money even if you have previously been in debt or experienced financial problems. Taking out this type of loan can also help you to improve your credit score for the future, giving you a better chance of taking out an unsecured personal loan at a later date.
Secured loans with Better Chance Finance
We can help get you a secured loan even if you might have struggled to get a loan elsewhere. At Better Chance Finance we work with a provider who can help get the right secured loan for you. We are authorised and regulated by the Financial Conduct Authority (FCA) and follow the Treating Customers Fairly (TCF) guidelines and ensure each of customers is only offered products that are suitable for them and they can afford.