Loan needed

stephanie75

I am 33 and own my home mortgage free its worth around £260k I am having real trouble trying to get a secured loan, I want a loan of £30,000 for new kitchen and to pay off my outstanding loans of around £11,000. Does anyone know of a company that would provide me with one, everyone I have spoken to says that we have to have a mortgage as opposed to a secured loan. I cannot believe how hard it is to get a loan when I own my home outright. Very frustrating.

Any ideas anyone?

Thanks

Rafter

Stephanie,

Most secured loan companies are set up for taking a second charge against a mortgaged property.

I think your best bet is speak to a mortgage broker and get a small mortgage - it will likely be cheaper than a secured loan anyway and you are putting your home at risk going the secured loan route anyway?

Given the small value, look for fee free mortgages or maybe something with an offset facility so you can effectively draw down funds or repay your loan as you can afford it.

R.

ILW

Why are you set on a secured loan rather than a mortgage?
Mortgage will generally be cheaper.

thriftymomma

A small mortgage will be substantially cheaper than a secure loan. I would look at figures if I was you.

rinkydinkpanther

The OP has stated in previous posts that she has 7 CCJs, which is why she can't get a mortgage. It is hardly surprising she is finding it difficult to borrow more money.

jonesMUFCforever

A mortgage and a secured loan are basically the same thing! - a loan secured on a property.

stephanie75

The CCJ's are cleared and I have now found a company that will give me a £30k mortgage in principle. So fingers crossed. Thanks everyone for your advice