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Secured loans

DaringDon
DaringDon Posts: 31 Forumite
Hi all.

Just looking for a quick piece of advice. I recently got a 100% mortage for a property ive been in for about 4 months.

Is it possible for me to get a secured loan on it if i have a 100% mortgage?

Also..........if you take out a secured loan........does it mean you can seel your house and buy another one during the time of the loan period?

Sorry if these questions are a little dumb.........just really unsure of this sort of thing and was told the advise on here is first class.

thanks all.

Comments

  • DaringDon
    DaringDon Posts: 31 Forumite
    anyone? :confused:
  • Dylanwing
    Dylanwing Posts: 2,015 Forumite
    I don't want you feeling all ignored, so I will try my best with limited knowledge. Some Companies used to lend up to 125% of property value, but rates were not great (Still better than usecured though), and as I discovered, redemption penalties can be unreasonably high. Moneysupermarket.com is a good place to check what might be available and likelihood of acceptance. Alternatively, just Google 125% Loans and see what you get, it might give a few suggestions.

    Secured loans can usually be transferred to another property subject to equity etc.
  • DaringDon
    DaringDon Posts: 31 Forumite
    hi thanks very much for the reply, although i'm a little confused.

    Really, all i'm looking to borrow is £12,000.

    Would i be able to borrow that with a secured loan (given that i have a 100% mortgage in place). And if i was able to get a secured loan, could i still move property (to another bought house) within the loan repayment time?

    thanks again all.
  • shopaholic2
    shopaholic2 Posts: 637 Forumite
    Part of the Furniture 100 Posts I've been Money Tipped!
    I think, and I'm no expert, But i believe you need equity to get a secured loan,and if you have 100% mortgage its unlikely you will have any equity, but as the Dylanwing said, you could try a company that offers 125% loans (so you would be able to get up to another 25% of your property's value)
    And provided the property to which you will be moving is not valued at less that what you owe, most companies will allow you to move the mortgage/loan with you.

    Hope that helps
  • Dylanwing
    Dylanwing Posts: 2,015 Forumite
    Sorry if I was not clear in my previous post. With this type of loan, much will depend on circumstances, income etc. and a good starting point is moneysupermarket.com - You type in a few basic details and it gives you a list of likely lenders and possible products - Nothing guaranteed of course, but it can point you in the right direction.

    I have no connection with that site whatsoever, it has just proved very useful over the past few years in finding me decent lenders, insurance deals etc.
  • Dylanwing
    Dylanwing Posts: 2,015 Forumite
    Just went to Altavista search, typed in 125% Equity Loan and it gave a number of UK Brokers that can arrange this type of loan (As well as a number of US Companies!).

    Happy hunting!
  • frugalpam
    frugalpam Posts: 2,514 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    DaringDon wrote: »
    Hi all.
    Just looking for a quick piece of advice. I recently got a 100% mortage for a property ive been in for about 4 months.
    Is it possible for me to get a secured loan on it if i have a 100% mortgage?
    Also..........if you take out a secured loan........does it mean you can seel your house and buy another one during the time of the loan period?
    Sorry if these questions are a little dumb.........just really unsure of this sort of thing and was told the advise on here is first class.
    thanks all.
    I used to have a secured loan on my previous house. When I sold it, it was a legal requirement to repay that secured loan from the funds obtained - I was given no choice in the matter. It made sense really, as the loan was secured on that property, not on the next one. And say you sold your house but decided not to buy another and rent instead, what would the loan be secured on, if they let you keep it on?
    I'd think twice before going down the secured loan route - its a risky one if you're not 100% certain you can meet the repayments. Your house literally is at risk and these firms have no compunction over possessing your house if you don't pay up. I nearly went there myself, some years ago - never again :eek:

    Pam
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