Secured Loans

GILLFRY2007

I currently have a secured loan and am looking to remortgage, but cannot seem to find a lender who will give me a mortgage as I have a secured loan

herbiesjp

Are you looking to clear the secured loan at the same time?

What figures are you looking at?

GILLFRY2007

secured loan is to continue at 640 per month, our joint salary is 39,000 pa, have 72,000 deposit to put down, had mortgage for 17 years, never missed a payment

Jon_Davies

You have 2 real options:-

Consolidate the secured loan into the remortgage - as long as the income multiples/affordability and loan to value stacks up this will be no problem for most lenders. This will reduce your overall payments but might extend the loan depending on how long is remaining on it.

Remortgage with a deed of postponement which a lot of lenders will allow (within their other criteria obviously) which switches the first charge and keeps the secured loan. The only real sticking point is the secured lender - some can be a real pain in trying to get them to agree to this.

Any good broker should be able to help - make sure they are whole of market and do not charge for a consultation (don't get too hung up on "fees free" - you'll have plenty of time to weigh up their value before incurring charges). Check their IDD and keep a copy as well as any KFI they provide you with. Make sure you are not compelled to take insurance through them.

GILLFRY2007

Thanks. As I have only recently taken this secured loan out, and am repaying it over a long period, will there be a high redemption figure, are there any lenders you can recommend who would be willing to lend with a secured loan.

Jon_Davies

If the loan was under £25k, you might be interested in...

Loans of up to £25,000 are governed by the Consumer Credit Act and a rebate will be given in accordance with the Consumer Credit (Early Settlement) Regulations 2004. The calculation varies between lenders for loans in excess of £25,000.

Otherwise, it really depends on specific circumstances and who you have the loan with as to whether you can postpone the second charge.