New 2nd charge lender as of 1st November 2023 for Secured Loans Bad Credit Direct Lender
The direct lender:
- Secured Loan Bad Credit Direct Lender
- Loan to Value up to 90%
- Some tolerance for credit score issues
- Interest rate 5.1% fixed for five years
- Other tracker rates available lower than 4.1%
- Direct lender, so no broker fees
- Modest automated valuation fee for most homes and simple applications
Funds are limited; please inquire today!
We have an agreement with a new lender offering better rates and terms than Equifinance, Together, Precise, and Clearly for many borrowers looking for Bad credit secured loans. The lender accepts applications for light adverse and heavy adverse cases.
Here are some Illustrations of poor credit secured loan cases done in 2023 – helping people with lower monthly repayments
Credit Card Debt Consolidation – want to borrow to save money?
Mrs H ran up cards helping out her sister during her sister’s divorce. She ended up with minimum monthly repayments on credit cards of around £500 a month. The payback was out of reach for her. She also had a store card with quite high interest. Because all her credit card minimum payments were fragmented across different times of the month, she sometimes missed or made payments late.
£12 fees were mounting up. Some months, she had one £12 fee for missing the minimum amount and another for exceeding the credit limit! His credit history was a bit damaged. She borrowed £25,000 with a bad credit secured loan and paid off all her credit cards and store cards. She then had one secured loan payment by direct debit on the same day her mortgage came out. The chaos in her life switched off overnight.
Here is the before and after:
Before secured loans bad credit
Home valuation £300,000 Mortgage outstanding £105,000
Mortgage rate 2.78% Mortgage monthly payments £486
Remaining mortgage term 21 years
Unsecured debt monthly servicing £488
Home LTV 35% – Secured loans for people with bad credit
Total monthly payments £974 – no broker fee loans
After bad credit homeowner loan – homeowner loans direct lenders
Home valuation £300,000 Mortgage outstanding £105,000 – loans without fees
Mortgage rate 2.78% Mortgage monthly payments £486
Remaining mortgage term 21 years Secured loan rate of 4.2%
Secured loan payment £149
Secured loan amount £25,000
Home LTV 43.33%
New total monthly payments £635 – lots more breathing space with secured loans for bad credit direct lenders!
Saving in monthly payments after 2nd Mortgage £339 – homeowner loans bad credit
Mrs H had a good income and could easily afford the £149 a month payment, and she was much better off. And nearly as important to her she didn’t get calls from credit cards nagging her all the time; her life was completely decluttered. Secured loans for poor credit was an excellent option for Mrs H’s debt consolidation.
Raising money for a distressed purchase of an Investment Property – homeowner loans for poor credit rating
Mr C had a friend who had been made redundant and had mortgage arrears. He agreed to buy his friend’s London flat a little under market value at £500,000. He wanted to get a 70% LTV (loan to value) but to let mortgage and put the property his company’s name.
The problem was he only had £55,000 in savings and needed to find £95,000 to loan to his company for the deposit.
Mr C also had a small default on his credit file from an unpaid water bill due to a nightmare from a previous tenant in one of his rental properties. Mr C needed the £95000 quickly. Mr C had an outstanding mortgage on his own home worth £610,000 from HSBC of £295,000.
The mortgage was bank base rate plus 0.5% so he could not remortgage. As he had a lot of personal income, he could prove he was able to get a secured loan of £95,000 and loan the money to his company to buy his friend’s flat. The secured loan on his home was completed quicker than the Buy to Let mortgage on the flat, so everything was done in good time.
Purchase of house near son’s new university and poor credit secured loans solution
Mr and Mrs S son got excellent A-level results. He chose a 4-year course in an area he liked. After studying the costs of rentals, Mr and Mrs S looked at buying a buy to let property for their son to live in, where he could let out rooms to other students. They found a 3-bed house for £155,000 near the university.
They looked at a Buy to Let Mortgage from the Leeds Building Society. No home improvements were necessary so this was fine with the credit broker. This made the loan application simpler and no lender fee was needed.
Here is the breakdown of the Purchase Buy to Let Mortgage:
Representative example: A mortgage of £108,500 payable over 25 years on our tracker rate for the mortgage term of 62 months at 1.7% above the Base Rate and then on our current variable rate of 5.99% (variable) for the remaining 238 months would require 62 monthly payments of £470.52 and 238 monthly payments of £651.99.
The total amount payable would be £186,593.00, made up of the loan amount plus interest (£75,845.00). The overall cost for comparison is 4.7% APRC representative.
The 5-year term suited Mr and Mrs S as this would get their son through university and placement year and would give him the option to get a job in the same area and stay in the house after his graduation.
The problem was Mr, and Mrs S didn’t have the £46,500 the lender needed for the 30% deposit to get the excellent mortgage deal. They needed £30,000 from somewhere. Their family home was worth £450,000 and they only had a small mortgage of £127,000, so they had a lot of equity.
As Mrs S had been back at work for several years, her income was excellent, as Mr S’s income is high too. So, Mr and Mrs S could keep the mortgage they got back in 2005; they worked out that they could get a poor credit secured loan from Paragon.
Here is the breakdown of the 2nd Mortgage on the family home-secured loans for poor credit:
Homeowner Loan second charge – repayment schedule: An assumed borrowing of £30,000 over 15 years, representing 3.9% APRC. Total amount payable: £39,641.02. Includes interest of £8,896.02. Repayments: 180 monthly repayments of £216.09 at 3.61% (variable).
The total monthly repayments of around £686.61 were not that high after the rent from the other bedrooms and the money they saved through not paying rent for their son.
Even in the event of interest rates going up significantly, Mr and Mrs S could still make the payments out of pocket if necessary, so the risk to them was minimal.
What sort of dumb fool wants to waste money on fees for Secured loans for people with bad credit?
Because people are sick of brokers fees, the demand for no broker fee loans is massive.
- Amicus Finance Plc
- Quivira Bridging Loan
- 90 Buy To Let Mortgages
- 1St Stop Personal Loans
- Together Short Term Loan
- Rbs Equity Release Plan
- United Trust Bank Home Owner Loan
- Bridge bank Capital Short Term Finance
- Octopus Bridging Finance Rates
- 100 Bridging Finance
- Best Mortgage Rates For Remortgage
- Do Natwest Do Equity Release
- Masthaven Bridging Finance London
- Mint Bridging Finance
- Lloyds Loan Rates
- Santander Short Term Loan
- Yorkshire Bank Bridging Finance Rates
- Equifinance What Does Adverse Credit Mean
- Walmoor Capital
- Precise Mortgage – Specialist Lending Masterclasses
- Property Developer Finance
- Coventry Building Society
- Hmo Finance
- Bridging Loan For Property Development
- Bridging Loans Tsb
- Ortus Northern Ireland Bridging Loan
- Remortgage With Poor Credit
- Precise Mortgages Bridge-To-Let Fast Bridging Finance
What are bad credit homeowner loans?
Type of loan? Secured loans for people with bad credit are only available to property owners/mortgage holders where the lender can forcibly sell your home to get its money back if you can’t repay.
They are usually used where the size of the loan is not appropriate for a lender on an unsecured basis.
- Unsecured loans available to homeowners with excellent payment history up to £25,000
- Secured loans can be accessible to people with some adverse history from a few thousand to hundreds of thousands.
- Generally, good loan repayment terms are shown by the loan calculator
Why would I get a Secured Loan Bad Credit Direct Lender?
With a secured loan, you are usually given a longer term. Sometimes, as long as the remaining term of your existing mortgage.
To save monthly money, you can secure your borrowing for debt consolidation. Make sure you don’t pay a lot of fees.
Secured Loans for Bad Credit UK vs Adverse Remortgage UK questions – Are Secured Loans Bad Credit worth it?
Examples of scenarios where a secured loan would be better than a remortgage with bad credit.
Firstly types of 1st charge mortgage you already have:
- It is a meagre variable rate, which is useful when bank base rates are so low
- It is interest only and, therefore, has a lower monthly payment, impacting your overall affordability.
- It has a redemption penalty.
- It has a competitive fixed rate with a reasonable remaining term length.
- It’s the type of mortgage which you could no longer qualify for because your circumstances have changed.
- It is essential to pay your first charge borrowing first, if your mortgage payment is low you can fight off repossession for a while by prioritising the 1st charge lender over the 2nd charge lender
Secured loans are applicable when the amount of money you borrow is significant, and the term is much longer than say that of a personal loan or car finance. You are much more likely to be accepted if you don’t tell lies to your loan advisors who draft the application form.
Examples of 1st charge mortgages you may already have where an adverse credit remortgage may be better
- It’s an expensive rate, and you can qualify for a better lender with a lower price (improvement in personal income, time out of credit problems, etc.)
- Its fixed-term discount rate has ended.
- It no longer has a redemption penalty
- It is a term that doesn’t suit your needs (too short).
- The 3rd party, like an ex-partner, may be on the mortgage, and you have to remove them (part of the divorce settlement, for example)
- The value of the house has appreciated significantly, enabling you to access more competitive lenders.
Funds are limited; please inquire today!
Signing away your home to a lender is not something you should do lightly as in certain circumstances, it limits your options. However, offering the lender collateral can allow you to access funds at a competitive rate even if you have a poor credit history. Consider personal loans for smaller amounts if your credit is very good.
Bad Credit No Guarantor Consolidation Loan
Some people can have all their disposable income taken up with debt service to multiple lenders. Credit cards, store cards, catalogue accounts and even other high-interest loans can consume all your income, making you a “debt slave”.
With a secured loan, you can use this money to clear high borrowing and pay the money back over a longer term that can even be matched to the remaining term of your mortgage. Also, if you have an existing mortgage from a pre-credit crisis lender, this mortgage is likely worth keeping, and a re-mortgage could be a bad idea.
House prices in the UK are recovering nicely; even outside London, many areas in the United Kingdom are back above the 2007 September highs. This has made the homeowners’ equity reappear, so secured loans are easier to qualify.
2021 2nd charge secured lending homeowner loans direct lenders
Today’s regulations make it difficult for you to get a mortgage you can’t service, so if you have a lot of unsecured debt you can’t really maintain you might be better off doing debt management and hitting your unsecured creditors with a “haircut” on their principal.
If you compare with other brokers, look at the broker fee and make sure the type of loan and interest rate is the same and the advisor is authorised and regulated by the finance conduct authority. If you can get homeowner loans direct lenders, you can save up to a lot of money.
Secured Loan Bad Credit Prime lenders include
- Santander Equity Release
- Lloyds Bank Equity Release
- HSBC Equity Release
- Natwest Equity Release
- Equity Release from the Nationwide
- Royal Bank of Scotland
Secured loans for bad credit direct lenders and adverse 2nd charge lenders include
- Norton Finance
- Spring Finance
- Central Trust
- 1st Shop Home Loans High LTV
- Evolution Money
- Opal homeowner
- Paragon personal finance
- United Trust Bank
Examples of secured loans bad credit:
- Max LTV 75% no-fee loans
- Amount £3000 to £50000 – loans with no fees
- Rate 7.67%
- Term 3 to 30 Years
Equifinance Heavy Adverse Secured Loan – financial conduct authority authorized
- Max LTV 70%
- Amount £50,001 to £100,000
- Rate 13.49% p.a
- Term 3 to 25 years – no fees loans
Secured Loans For Bad Credit Direct Lenders
We have another broker-only lender not listed here with great rates and terms.
Secured loan rates in the UK
Depending on your adverse credit history and its recent, Secured Loan Bad Credit Direct Lender rates in the UK can range from a per cent or so away from a reasonable mortgage rate to 12% or more. Lending to people with severely impaired credit histories likely involves high costs for the lender.
For example, a poor credit lender may have to have a big team of staff making outgoing phone calls chasing people for late payments. In contrast, a prime lender would likely have a tiny group of chasers as most people with a good history don’t need continual chasing to make a timely payment. Many people want a secured loan bad credit direct lender because brokers fees can be very high, typically around 10%.
An example of a good secured loan lender is Shawbrook Bank. Applicable credit profiles can save money with a debt consolidation loan. Credit scores that are not quite high enough can be referred and sometimes pushed through by the appropriate team at the lender.
Interest rates used by secured loan lenders when setting rates:
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Homeowner Loans Direct Lenders
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Secured Loan Bad Credit Direct Lender
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Looking for a secured loan bad credit direct lender?
The UK Secured loans bad credit direct lender and secured loans for bad credit instant decision
no broker fee loans
How much money can I get?
You can release 60% of your home’s value. For example, if your house is worth £240000, you can borrow £144000.
Do Platform do Secured Loans?
Yes, Platform does secured loans at 4.1% APRC.
Do Platform do Equity Release Under 55?
Yes, Platform Equity Release Under 55 is 4.1% MER.
Do Platform do Secured Homeowner Loans?
Yes, Platform Secured Homeowner Loans are 4.1% APR.
Do Platform do Homeowner Loans?
Yes, Platform Homeowner Loans are 4.1% MER.
Do Platform do Secured Home Owner Loans?
Yes, Platform Secured Home Owner Loans are 4.1% APR.
Do Platform do Homeowner Loans for Bad Credit?
Yes, Platform Homeowner Loans for Bad Credit are 4.1% APR.
Do Platform do Direct Lender Secured Loans?
Yes, Platform Direct Lender Secured Loans are 4.1% MER.
Do Platform do Home Equity Lines Of Credit?
Yes, Platform Home Equity Lines Of Credit are 4.1% MER.
Do Platform do Debt Consolidation Loans?
Yes, Platform Debt Consolidation Loans are 4.1% MER.
Do Platform do Home Equity Loans?
Yes, Platform Home Equity Loans are 4.1% APR.
Do Platform do Personal Loans?
Yes, Platform Personal Loans are 4.1% APR.
Do Platform do Unsecured Loans?
Yes, Platform Unsecured Loans are 4.1% APR.
Do Platform do Loans To Consolidate Existing Borrowing?
Yes, Platform Loans To Consolidating Existing Borrowing are 4.1% MER.
Do Platform do Loans For Poor Credit History?
Yes, Platform Loans For Poor Credit History have 4.1% APR.
Do Platform do Homeowner loans to consolidate existing debts?
Yes, Platform Homeowner loans to consolidate existing debts are 4.1% APRC.
Do Platform do Secured loans with no broker fees?
Yes, Platform Secured loans with no broker fees are 4.1% MER.
Do Platform do Homeowner loans with no early repayment charge?
Yes, Platform Homeowner loans with no early repayment charge are 4.1% APRC.
Do Platform do Loans without an arrangement fee?
Yes, Platform Loans without an arrangement fee are 4.1% APRC.