secured loan through mortgage company or other?

in Loans
7 replies 172 views
southernmanc78southernmanc78 Forumite
2 Posts
First Post
Newbie
I need to borrow around 10k but I already have one unsecured loan so I was thinking the best would be to look at a secured loan. Would it be better to approach my mortgage company (Clydesdale) to borrow more on my mortgage as I currently have over 70k in equity or should I search for a better deal on the site for a secured loan with another provider?

Replies

  • It very much depends on who might lend to you and what rates you can get.
  • Grumpy_chapGrumpy_chap Forumite
    12K Posts
    Ninth Anniversary 10,000 Posts Name Dropper Combo Breaker
    Forumite
    What is the loan for?  Sometimes there are finance facilities available associated with the product.
  • Ebe_ScroogeEbe_Scrooge Forumite
    7.3K Posts
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Forumite
    You "Need" to borrow or you "Want" to borrow £10k?  Grumpy Chap makes a very good point about product-specific finance.
    Also, you do realise what's meant by a Secured loan?  If it's secured against your house and you fail to maintain repayments, the consequences are rather more serious than if you were to default on an unsecured loan.
  • southernmanc78southernmanc78 Forumite
    2 Posts
    First Post
    Newbie
    I know what secured means yes, there is zero chance of me defaulting on a loan of any kind. I need the loan as I have to pay HMRC for taxes owed due to my closing my business as a result of Covid.
  • Grumpy_chapGrumpy_chap Forumite
    12K Posts
    Ninth Anniversary 10,000 Posts Name Dropper Combo Breaker
    Forumite
    Have you asked HMRC whether a payment plan is possible?  They are being more conciliatory than normal because of COVID.
  • Grumpy_chapGrumpy_chap Forumite
    12K Posts
    Ninth Anniversary 10,000 Posts Name Dropper Combo Breaker
    Forumite
    I just had a thought - the OP has a mortgage and is considering increasing their secured borrowing.
    One option is to increase the mortgage with the current lender.  (Remortgage with existing lender and increase amount borrowed.)
    Second option is to remortgage to a different lender with the increase in the amount borrowed wrapped up in the remortgage.
    Third option is to keep the current mortgage and take additional secured borrowing from a different lender.

    For options 1 (&2), will the respective lenders consider HMRC payments as an acceptable reason to advance additional borrowing?

    For option 3, do the terms of the existing mortgage permit a third party to also hold a secured interest in the property?  It may not be permitted and would rule out this option if so.
  • Ebe_ScroogeEbe_Scrooge Forumite
    7.3K Posts
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Forumite
    there is zero chance of me defaulting on a loan of any kind.
    Really?  Is your job absolutely guaranteed for the next 5 years or whatever?  Sorry, not meaning to be sarcastic, but no-one can tell what the future holds, and statements like that just cannot be justified.  That aside, you've been given some excellent advice by other posters, hopefully you will be able to sort this out one way or another.

Sign In or Register to comment.
Latest MSE News and Guides

Did you know there's an MSE app?

It's free & available on iOS & Android

MSE App

Regifting: good idea or not?

Add your two cents to the discussion

MSE Forum

Energy Price Guarantee calculator

How much you'll likely pay from April

MSE Tools