Secured loans today are a great solution for someone that wants to keep their existing mortgage but needs to raise money.
Here are so great reasons you might want a secured loan rather than a remortgage:
- Existing first charge mortgage is a very good rate not available today from any lender
- Existing first charge mortgage is interest only when most lenders won’t offer interest only any more
- Existing first charge mortgage has a redemption penalty that is too high that would need to be paid
- You don’t meet the criteria for a competitive first charge lender re-mortgage
- Their is an upper limit to what you can borrow on an unsecured loan
- You can take out a secured loan over a longer term usually than an unsecured loan, often matched to the remainder of the term of your existing mortgage
- The interest rates on a secured loan are likely to be lower than on an unsecured loan
- It maybe your only option if you have bad credit. Many competitive unsecured loan lenders will exclude people with bad credit or even a couple of late payments
Some buy to let landlords can get secured loans too, theses are sometimes called Landlord loans.