How to get a Secured Loan in Lincoln
Also known by their official title of “Second Charge Mortgage”, a Secured Loan is a loan that helps secure the property of your dreams, albeit with higher than standard interest rates.
The reason for this is because, in the event of a repossession, the provider of the Secured Loan must wait for the original provider to sell the property before getting their money back. Whilst this is often known as an expensive “last resort”, they can often be incredibly helpful for certain situations.
If you need to raise money against your property, there are 3 main options:
- Borrow more money from your current lender
- Move to a new lender via Remortgage
- Take out a Secured Loan (Second Charge Mortgage)
Your mortgage stays exactly how it is if you take out a Secured Loan. The new amount is borrowed from a different provider and a separate direct debit.
The length of this new amount varies, as you could take it out over a shorter or longer-term than your main mortgage. If you’re only in need of a small amount, you may benefit from looking at unsecured borrowing.
Some of the main reasons people take out additional borrowing are:
- Home improvements
- Debt consolidation
- Purchasing cars or other vehicles
- Paying for a wedding/honeymoon/special anniversary/holiday
- Injecting cash into businesses
- Paying for school fees
- Paying tax bills
- Cosmetic surgery
Reasons why a Second Charge Mortgage may be the most suitable option:
- Your current mortgage rate is low or interest-free and you’d like to keep it
- You are recently self-employed
- Your income comes from multiple sources
- Since you last took a mortgage your credit rating has dropped
- Due to early repayment charges, you’re looking to stay away from Remortgaging
- You need to raise funds very quickly
- You are looking to raise capital against your UK property to purchase foreign property
- You’re looking to raise funds and would prefer a different lender
- Your current lender disallowed a further advance application
- You’re raising funds for an un-mortgageable property
- You need capital to pay business tax liabilities