Secured Loans Help.

Wildcatarmy

Cut short,

I am a homeowner and house is fully paid for, bought it a month ago in cash. (£62k).

Now my credit rating is poor so doubt Id be able to get a loan anywhere, until I read about the secured loans. Not sure whether to look into one but could do with something to help clear some outstanding debt (3-4k), and maybe a little left over to spend a bit on the house to do it up. Thought by getting a loan of this kind and paying it back would help my credit rating in say 5 years time when possibly we would be looking to sell our house and move onto something a little bigger.

Is it advisable to enquire about a secured loan and if so, who's the main lender ?

lawrie28

A secured loan is the worst type of loan, a loan of last resort.

If you don't pay the loan, they can make you homeless. Simple.

You have obviously saved the £62k from somewhere, and are in the enviable position of not having a mortgage, so surely you could make decent chunky payments off the debt?

And save up to do the house up?

If you get a secured loan, there will be a massive interest rate as well as chunky fees, and the don't like doing htem for low amounts or over short periods of time.

Have you tried for a unsecured loan at all?

Wildcatarmy

More chance of me getting in bed with a few members of the Saturdays than getting an unsecured loan !!

Wasnt sure about the implications of the secured loan, and felt happy Id be able to pay off the amounts each month as I didnt have a mortgage, but I suppose if that was the case I wouldnt have existing debts left to pay !

Thanks for the advice, I'll leave well alone.

Wildcatarmy

Apologies for bringing this back up but its better than creating a new thread.

Just need some advice on the Secured Loans area as its definitely something I need to apply for to see where I stand. Considering going for £10k over 5 years possibly with a credit union but still feel I'll get turned down on my credit score even though I have £62k equity in the property as it stands plus we reckon it will be worth a bit more now we have done the inside up but need to borrow some money to sort the outside out as the back garden needs a complete renovation but again this will only help to increase the value of the house if we decide to sell it.

Again, will my credit score mean I have zero chance of getting a secured loan despite the equity or will somebody out there be happy to lend me it ?

bouncydog1

Just a question - did you save up £62k to buy the property? If so, why not try the bank where you saved to see if they will loan you money?

How do you know that you have a poor credit score?

Wildcatarmy

Inherited the money through death in the family, bought the house outright with the money left. Credit rating is garbage, I know that from previous years problems.

Applied for a Secured Loan today through Barclays (to Freedom Finance) and got rejected !! So not sure what I can do to raise any equity out of the property in all honesty. Considering transferring it over to a member of my family who has a better credit rating than me and asking them to borrow on it on my behalf, but then its the trust implications of transferring over a house worth probably around £70k in the hope they give it back after the loan is cleared. On past experience thats maybe not a good option, but then again, Im just a little puzzled what I can do otherwise.

Oh well, back to the drawing board.

Tixy

What is actually on your credit files?

What credit accounts do you have? what debts?
Do you have late payments? defaults? CCJs?
are you on the electoral roll at the new property yet? even if you are that won't show on your credit files for a month or 2 yet so might be better waiting untl then.

Are you employed? how much do you earn? what APRs are your current debts? and how much can you afford to repay a month towards them?

_Andy_

It wouldn't be a secured loan you want, it's an remortgage on an unencumbered property. Speak to a broker who can find a suitable lender that will accept the adverse (and don't expect high street rates)