Secured Loans 2019

snol

I need to borrow £15,000 now and repay it over the next 5 years.

I have never borrowed any money. I lived in a van (motorhome) for 30 years! So I cannot get a quote for an unsecured loan anywhere near the advertised interest rate. (Soft credit check.)

I own a property valued at around £300,000, with the mortgage already paid off. I do not want to sell this property. Tenants pay rent to live in a part of this property.

Will getting a secured loan get me better interest rates?

What are the pros and cons?

I am very confident I will not miss the monthly payments, and will likely be able to make early repayments if it can reduce the total amount payable for this debt.

DCFC79

snol wrote: »

I need to borrow £15,000 now and repay it over the next 5 years.

I have never borrowed any money. I lived in a van for 30 years! So I cannot get a quote for an unsecured loan anywhere near the advertised interest rate. (Soft credit check.)

I own a property valued at around £300,000, with the mortgage already paid off. I do not want to sell this property.

Will getting a secured loan get me better interest rates?

What are the pros and cons?

I am very confident I will not miss the monthly payments, and will likely be able to make early repayments if it can reduce the total amount payable for this debt.

Secured finance is secured against the item eg the house, if you fail to make the payments your basically screwed as your home is at risk.


Its not guaranteed you will get a favourable rate.


You say you own the property so do you live in it ?
And if so for how long ?

snol

DCFC79 wrote: »

Secured finance is secured against the item eg the house, if you fail to make the payments your basically screwed as your home is at risk.


Its not guaranteed you will get a favourable rate.


You say you own the property so do you live in it ?
And if so for how long ?

I am officially "living" in this property, for over 4 years, but I am mostly in my van (I should really say a motorhome) travelling the country working as an IT contractor.

Part of the property is rented out, this supplements my income. The tenants take good care of the place!

Hence I have two very steady incomes.

DCFC79

snol wrote: »

I am officially "living" in this property, for over 4 years, but I am mostly in my van (I should really say a motorhome) travelling the country working as an IT contractor.

Part of the property is rented out, this supplements my income. The tenants take good care of the place!

Hence I have two very steady incomes.

Admittedly my knowledge is a little limited but there are other posters who know more and will post advice.

snol

DCFC79 wrote: »

Admittedly my knowledge is a little limited but there are other posters who know more and will post advice.

Thanks. Hope they will chime in soon.

snol

DCFC79 wrote: »

Admittedly my knowledge is a little limited but there are other posters who know more and will post advice.

Thanks. Hope they will chime in soon.

MallyGirl

Have you tried the eligibility checker.

Secured loans should be a last resort

financegeek

Hi Snol,

if you don't currently have a charge on the property you'd need a standard first charge mortgage, rather than a secured loan.

as your situation is a bit quirky (e.g. tenants in property, relatively small amount required) i'd probably suggest going to see a mortgage broker to look at your options, rather than trying lenders direct, as it may not be a case for the 'vanilla' high street lenders who want straight forward larger cases.

it might be worth posting on the mortgages board as well (make sure you include details of your income) as although the brokers can't recommend any lenders, they should be able to give you an indication as to whether it's a case that lenders will consider.

System

£15000 unsecured loans are at such low interest rates for those who are creditworthy that the costs involved with a secured loan would wipe out the benefits of any lower rates they would attract if they did.

BrassicWoman

Decent job, owns property... sounds an ok risk. Don’t overthink it just apply with your bank?

foxy-stoat

Try other methods, unsecured loan and money transfer and balance transfer cards over a secured loan.