Compare The Best Secured Loan Rates – No Broker Fees 2024
Looking for the best secured loan rates but daunted by the varying interest rates? You’re not alone. Secured loans, backed by an asset like your home, often bear lower interest rates than unsecured ones.
This guide will help you through the maze of lenders, explaining how best to compare their offers and choose wisely.
Main Points To Consider:
- Secured loans require an asset, like a house or car, as collateral in case of non-payment.
- Secured loans offer lower interest rates and longer repayment terms than unsecured loans.
- Eligibility criteria for secured loans include ownership of property, age requirement (at least 18 years old), regular income, good credit history, and meeting loan-to-value ratio limits.
- Tandem Secured Loans, Pepper Money Secured Loans, Selina Finance, United Trust Bank and Norton Home Loans Secured Loans are among the top secured loan providers in 2024. They offer competitive interest rates and various features tailored to homeowners’ needs.
Gain Access To Our Lender Panel With 100’s Of Secured Loan Products & High Acceptance Rates
- Our secured loan brokers match the term of the loan to remaining term of your mortgage
- Excellent for clearing other loans/credit cards/existing car credit
- New lenders for 2024 now available
- High loan-to-value (LTV) options with many lenders
- Get a decision the same day
- Retain your existing mortgage
- Soft footprint credit search that won’t impact your credit rating
- Rates from just 4.85%
- Borrow up to 100% of the value of your home ( subject to status)
- No obligation or pressure to proceed
- Homeowner loans not featured on the comparison engine sites
Pre-Decision In Principle Application Form. Sympathetic To Past Credit Problems: All Forms Of Credit.
A Selection Of The Best Secured Loan Rates Currently Available In The UK
| Loan Provider & Type | Interest Rate |
|---|---|
| Pepper Money Prime Rate Secured Loan | 4.85% APRC |
| United Trust Bank Secured Loan | 5.12% APRC |
| Selina Finance Secured Loan | 4.37% APRC |
| United Trust Bank Ltd 1st Charge Mortgage-Remortgage | 5.85% APRC |
This table showcases the loan provider, type, and interest rate. All the providers above accept self-employed people and offer a loan term of 2-30 years.
Other Secured Loan Providers Worth Considering
Norton Home Loans Secured Loan
Norton Home Loans is one of the top providers of secured loans in 2024. They offer fixed and variable rate options, allowing homeowners to choose the option that suits their needs.
With Norton Home Loans, you can borrow smaller amounts with their low minimum loan amounts. They have options starting from just one year if you prefer a shorter repayment term.
Norton Home Loans strives to provide competitive rates and various loan options for homeowners in the UK.
Features and Interest Rates (Norton Home Loans Secured Loan)
Norton Home Loans offer a range of secured loan products designed to meet the needs of homeowners in the UK. Their loan products come with various features and interest rates.
| Features | Interest Rates |
|---|---|
| Loan amounts from £3,000 to £500,000 | Varies based on loan amount, LTV, and individual credit rating |
| Loan terms from 3 to 30 years | Generally lower for longer-term loans |
| Available for homeowners with adverse credit history | Higher for applicants with poor credit scores |
| Choices between fixed-rate and variable-rate loans | Fixed-rate loans offer stability, while variable-rate loans offer potential savings if interest rates drop |
| Overpayments are allowed without penalty | Overpaying can save on interest over the loan term |
| Debt consolidation loans available | Often a lower rate than credit cards or personal loans |
Tandem Secured Loan
Tandem offers secured loans to homeowners in the UK. They provide both fixed and variable rate options for borrowers. With Tandem, you can borrow up to 95% of the equity in your home.
The repayment terms start from two years, giving you the flexibility to repay the loan. The amount you can borrow depends on the equity in your home and your ability to make monthly repayments.
If you make payments on time and in full, a Tandem secured loan can even help improve your credit rating.
Features and Interest Rates (Tandem Secured Loan)
The Tandem Secured Loan is one of the top choices for homeowners in the UK. It provides a balance between competitive interest rates and beneficial features.
Here’s a quick snapshot of what the Tandem Secured Loan has to offer:
| Feature | Detail |
|---|---|
| Loan Amount | Offering loans from £10,000 up to £100,000 |
| Interest Rate | Competitive interest rates, potentially lower for individuals with high-value collateral and good credit scores |
| Loan Term | Flexible loan terms up to 25 years, depending on the loan amount and credit assessment |
| Security Required | Loan is secured against your property or other high-value asset |
| Access for individuals with poor credit scores | Secured loans could be an option for individuals with less than perfect credit histories |
| Repayment Structure | Offers both fixed rate and variable interest rates, providing versatility in repayment plans |
Advantages and Disadvantages of Secured Loans
Secured loans offer lower interest rates and longer repayment terms, making them more affordable and accessible for borrowers. However, there is a risk of losing the asset used as collateral if the loan is not repaid.
Pros of Secured Loans
Secured loans offer a great way for you to borrow money.
Here are some positives about secured loans:
- You can get lower interest rates with secured loans.
- They let you pay back the loan over a longer time.
- A low or bad credit score won’t stop you from getting a secured loan.
- The value of your asset decides how much money you can borrow. This lets you borrow larger amounts.
- A secured loan could be an option if your credit isn’t too good.
- Your needs and how well you handle money will decide if a secured loan is good for you.
Cons of Secured Loans
Secured loans have some downsides that homeowners in the UK should be aware of:
- Risk of Home Repossession: If you default on a secured loan, your home could be repossessed. This can happen if you can’t make the repayments.
- Higher Interest Rates for Some Borrowers: If you have a poor credit score or lower income, you may be charged higher interest rates for a secured loan than someone with better financial circumstances.
- Variable Interest Rates: The interest rates on secured loans can increase over time, especially with recent base rate increases. This means that your monthly repayments could go up.
- Limited Borrowing Options with Existing Mortgages: Some secured loans have maximum loan-to-value ratios, restricting borrowing options for homeowners with mortgages.
- Longer Loan Repayment Periods: While longer repayment periods result in lower monthly payments, you’ll pay more overall interest charges.
Summary tables for well-known secured loan providers
These tables include key features and pros and cons for each provider.
Pepper Money Secured Loan
| Feature | Details |
|---|---|
| Minimum Property Value | £75,000 |
| Applicant Eligibility | Self-employed, employed, contractor income applicants |
| Property Requirement | Must be in the UK with a first-charge mortgage |
| Loan Security | Primary residential address |
Pros:
- Fixed, variable, and discounted rates are available.
- Borrow up to 100% of equity.
- Low minimum loan amount.
- Wide range of loan terms.
Cons:
- Increased risk when borrowing 100% of home value.
- No email replies for customer support.
Norton Home Loans Secured Loan
| Feature | Details |
|---|---|
| Minimum Credit Score | 300 |
| Age Limit for Term | Term not to extend past 85th birthday |
| Bankruptcy/Debt Relief Order | Not in the last three years |
Pros:
- Fixed and variable rate options.
- Low minimum loan amounts.
- Short repayment terms from one year.
Cons:
- Longer maximum loan terms are available elsewhere.
- Larger loan amounts are available with other lenders.
Central Trust Secured Loan
| Feature | Details |
|---|---|
| Geographic Availability | England, Wales, Scotland, Northern Ireland (70% LTV cap in NI) |
| Employment Requirement | Three months employed, 12 months self-employed |
| Loan Security | Property |
Pros:
- Fixed and variable rate options.
- Direct application or through a broker.
- Multiple customer support options.
Cons:
- Shorter maximum repayment term.
- Narrow range of loan amounts.
- Higher LTVs available elsewhere.
United Trust Bank Secured Loan
| Feature | Details |
|---|---|
| Minimum Mortgage History | 12 months |
| Property Location | England, Wales, Mainland Scotland |
| Minimum Property Value | £90,000 |
Pros:
- Fixed and tracker rate options.
- High maximum loan amount.
- Wide range of loan terms.
Cons:
- High minimum loan size.
- Higher LTVs are available with other lenders.
Selina Finance Secured Loan
| Feature | Details |
|---|---|
| Minimum Property Value | £100,000 |
| Residency Requirement | Permanent UK resident, three years of address history |
| Income Requirement | £22,500/year (individual), £30,000/year (joint) |
| Credit History | A Good credit history is required |
Pros:
- Fixed and variable rate options.
- High maximum loan amount.
- Long repayment terms of up to 30 years.
Cons:
- Shorter minimum loan terms are available elsewhere.
- Smaller loans are available through other lenders.
- Higher LTVs are available elsewhere.
West One Secured Loan
| Feature | Details |
|---|---|
| Age Requirement | 21 years old, loan term ending by age 85 |
| Employment Requirement | Two years for self-employed, three months for employed |
| Minimum Property Value | £100,000 |
Pros:
- Fixed and variable rate options.
- Wide range of loan terms.
- Large loan amounts.
Cons:
- Other lenders offer higher LTVs.
Spring Finance Secured Loan
| Feature | Details |
|---|---|
| Geographic Availability | England, Wales, Mainland Scotland |
| Employment History | Three months required |
| Income Requirement | £18,000/year household income |
Pros:
- Fixed and variable rate options.
- Wide range of loan terms.
Cons:
- Larger loan amounts are offered by other lenders.
- Higher LTVs are available elsewhere.
Together Secured Loan
| Feature | Details |
|---|---|
| Age Requirement | 18 to 80 years at the end of the term |
| Employment Requirement | 12 months continuous or six months with current employer |
| Applicant Eligibility | Regular bonuses, commission, overtime, benefits/DWP accepted |
Pros:
- Fixed and variable rate options.
- Wide range of loan terms.
- There is no minimum property value.
Cons:
- Higher LTVs are available elsewhere.
- Other lenders offer a Wider range of loan amounts.
These tables provide a general overview of the features and considerations for popular secured loan providers in the UK. Please use our free quote service for specific rate details.
Comparing Secured Loans with Unsecured Loans
Secured and unsecured loans are two types of finance that cater to different financial needs and circumstances. This comprehensive comparison will help homeowners understand the key contrasts between the two.
| Comparison Points | Secured Loans | Unsecured Loans |
|---|---|---|
| Definition | Loans backed by an asset or collateral | Loans that don’t require any collateral |
| Interest Rates | Typically, offer lower interest rates | Usually come with higher interest rates |
| Loan Amount | Amount is usually based on the value of the collateral | Amount is typically based on the borrower’s creditworthiness |
| Risk to Borrower | Possibility of losing the collateral in case of a default | Lower risk as no asset is at stake; however, late payments can affect credit scores |
| Eligibility | Can be obtained even with a low or bad credit score | Requires a good credit score |
| Loan Term | Offers longer loan terms | Typically provides shorter loan terms |
| Types of Secured/Unsecured Loans | Includes homeowner loans, logbook loans, mortgages, and guarantor loans | Includes personal loans, credit cards, and student loans |
Eligibility Criteria for a Secured Loan
To qualify for a secured loan in the UK, homeowners must meet certain eligibility criteria.
Here are the key requirements:
- Ownership: You must own a property or have equity in your home that can be used as collateral for the loan.
- Age: You must be at least 18 years old to apply for a secured loan.
- Income: Lenders typically require borrowers to have a regular income showing they can repay the loan.
- Credit History: While secured loans are available for individuals with poor credit scores, lenders will still review your credit history to assess your repayment capability.
- Loan-to-Value Ratio (LTV): The LTV is the percentage of the property’s value you want to borrow. Most lenders have maximum LTV limits that you need to meet.
How to Apply for a Secured Loan
To apply for a secured loan, follow these steps:
- Research and compare lenders: Look for reputable lenders who offer secured loans in the UK. Consider factors such as interest rates, loan terms, and customer reviews.
- Assess your eligibility: Check the eligibility criteria set by the lenders to determine if you meet their requirements. This may include having a credit score, being a homeowner, or having a specific income level.
- Gather required documents: Prepare necessary documents such as proof of identity, address, income statements, and details about the asset you are using as security.
- Apply online or in person: Fill out the application form provided by the lender either online or in person at their office. Provide accurate information and ensure all fields are completed.
- Submit supporting documents: Submit any documents the lender requests along with your application. This may include bank statements, property valuations, or other relevant paperwork.
- Wait for approval: The lender will review your application and assess your creditworthiness and loan repayment ability. This process may take some time, depending on the lender’s processes.
- Receive loan offer: If approved, you will receive a loan offer detailing the amount, interest rate, repayment terms, and applicable fees.
- Review and sign the agreement: Carefully review all aspects of the loan offer, including terms and conditions, before signing the agreement. Seek legal advice if needed.
- Receive funds: Once you have signed the agreement, the lender will disburse the funds into your designated bank account or provide a cheque.
- Make regular repayments: Ensure you make timely repayments according to the agreed schedule to avoid penalties or legal implications.
Managing Your Secured Loan
Managing a secured loan requires careful planning and responsibility. One important aspect is ensuring you can afford the monthly repayments based on income and outgoings.
It’s crucial to have a realistic budget and stick to it. Keep track of your spending and avoid taking on additional debt that may strain your finances.
Another key consideration is maintaining a good credit rating. Making timely repayments on your secured loan will positively impact your credit score while missing payments can have serious consequences.
If you encounter financial difficulties that make it challenging to meet your repayment obligations, promptly communicating with your lender is essential. They may be able to offer options such as restructuring the loan or providing temporary relief.
Additionally, it’s vital not to overlook any fees or charges associated with the secured loan, such as early repayment or administration fees. Familiarise yourself with the terms and conditions of the agreement so that you are aware of any potential costs.
Managing a secured loan involves staying organised, being proactive about financial planning, and responsibly meeting repayment obligations.
Alternatives to a Secured Loan
If you’re a homeowner in the UK looking for alternatives to a secured loan, several options are available.
Here are some alternatives to consider:
- Remortgaging: If you have equity in your home, you can explore remortgaging to borrow additional funds. This involves switching your current mortgage to a new lender or renegotiating the terms with your existing lender.
- Guarantor Loans: Another option is to consider guarantor loans, where a family member or friend with good credit acts as a guarantor for the loan. They agree to repay the debt if you’re unable to do so.
- Unsecured Personal Loans: These loans don’t require any collateral and can be used for various purposes, such as home improvements or consolidating debts. However, keep in mind that interest rates may be higher compared to secured loans.
- 0% or Low-Interest Credit Cards: If you have good credit, you may be eligible for credit cards with promotional offers of 0% interest on purchases or balance transfers for a certain period.
- Overdrafts: Using an overdraft facility on your current account can provide short-term access to funds when needed. However, be aware that interest rates can be high.
Best homeowner loan rates in 2024
Secured loans can be a great option for homeowners in the UK. They offer lower interest rates and longer repayment terms compared to unsecured loans.
Considering the advantages and disadvantages carefully before choosing a lender and ensuring you meet the eligibility criteria is important.
By researching and comparing different providers, you can find the best secured loan rates that suit your financial needs.
Best Secured Loan Rates
If you can access the best secured loan rates and get a loan on your existing house, getting the cheapest area to buy a house in Sheffield could be an easy bet when you can buy with cash.
FAQs
1. What are secured loan rates?
Secured loan rates refer to the interest rates charged on loans that require collateral, such as a house or car, to secure the loan.
2. How do I find the best secured loan rates?
To find the best secured loan rates, it’s important to compare offers from different lenders and consider factors such as your credit score, the value of your collateral, and any additional fees associated with the loan.
3. What is the typical repayment period for secured loans?
The repayment period for secured loans can vary depending on the lender and amount borrowed but typically ranges from 5 to 25 years.
4. Can I get a secured loan if I have bad credit?
Getting a secured loan, even with bad credit, may be possible since these loans are backed by collateral. However, having good credit can help you secure better interest rates and terms.
5. Do secured loans have better APR?
UK secured loans often offer better APR than unsecured loans because they are backed by collateral, reducing the lender’s risk. However, the exact APR can vary based on the borrower’s creditworthiness and the specific terms of the loan.