Secured loan application checklist

Our secured loan application checklist will give you a step-by-step guide to homeowner loans

What would you do if you had the extra cash?

You’ve probably put a lot of time and money into your property to keep it in a good state of repair, after all, homes are generally an appreciating asset. But as well as being a sound ‘home’ for your money, if you need a large loan, your property could provide the key to opening up a large line of credit (from a few thousand pounds to £5 million) with a secured loan.

But, before you start applying for a secured loan (sometimes known as a second mortgage, 2nd charge or homeowner loan), follow this loan checklist to ensure your application goes as smoothly as possible. Or you could just apply for a secured loan through and we’ll take care of everything for you.

7 steps to applying for your secured loan

1. Check your credit report and credit score

Before you start applying for a secured loan, check your credit score and that your credit report is accurate. There are three main Credit Reference Agencies (CRAs) in the UK; Equifax, Experian and TransUnion (formerly called Callcredit). Contact them to see your credit report and check that everything within it is accurate. It’s important that you have any inaccuracies corrected because having incorrect information in your report could lower your chances of having a secured loan approved.

Of course, if you apply for a secured loan through we’ll automatically check your credit score and credit history for you.

2. Work out how much equity you have in your property

Because a secured loan uses the equity you have in your property as collateral, you’ll need to see how much equity you have to be able to see how much you could borrow:

2a. Get a property valuation

Ask an independent valuator to give you an accurate valuation or perhaps use an online home valuation service such as Zoopla. Lenders are cautious about valuations from estate agents in general as they may sometimes over value property. Again, when you apply for a secured loan through we can take care of all this for you.

2b. See how much you owe on your mortgage

Once you know your mortgage balance (check online, via app or just call the mortgage lender). If you already have a loans or debts secured on your property, find out how much is outstanding. Add the total amount owed on your mortgage plus any existing homeowner loans, then subtract this figure from the value of your property.

2c. Do some quick maths

  • Let’s say you discover that your property’s worth £100,000
  • You have a mortgage balance of £75,000 left to pay (£75,000 LTV)
  • You have £25,000 equity available in your property

2d. Check the loan to value (LTV)

When you look at secured loans, they will show you an LTV. This shows you the percentage you could borrow up to. So, in our example, with a 75% LTV you could borrow £25,000.

If you already have an existing second mortgage, the lender will need to pay that off first. If you have £25,000 equity in your property and a homeowner loan of £10,000, you will only be offered a loan of up to £15,000.

3. Compare the secured loans on offer

Check the secured loans available so that you get the best deal and you don’t pay more than you have to. Sites such as are a great place to compare secured loans and the options open to you.

4. See how much the secured loan will cost you and work out whether you can afford it

Lenders will run an affordability to test to see if you’ll be able to comfortably manage the repayments on your secured loan. If they feel that you can’t afford to borrow the amount you request, they’ll decline your application for a secured loan.

By comparing loans and the repayments involved you’ll quickly be able to see how much you can sensibly borrow. A mortgage broker such as will be able to help you with this, but make certain that you’ll be able to make all the repayments and on time, because if you don’t, it may hurt your credit rating or put your property at risk.

5. Think carefully about the amount you borrow

Work out exactly what you need to borrow. Don’t be tempted to ask for more than you really need, so that there is extra money for a treat such as a holiday. Because remember, a secured loan is secured against your home.

6. Consider if you may be able to repay the secured loan early

It’s worth noting that secured loans often come with early repayment penalties. So, for example, if you had a windfall and that made it possible to repay the loan early, there may be a penalty to pay. A reputable loan broker such as will alert you to any penalties before you apply for a secured loan. And if you do have a windfall, they could help you work out if you’d save money by paying the loan early along with the penalty, or if it will be best for you to pay off other forms of debt that you may have.

7. Send in all the documents you’re asked for and fill out all loan application documents completely

It’s important that you provide all the information and documents you’re asked and as quickly as you can. If you don’t, the application process for your secured loan will slow down considerably as the lender or loan broker are forced to spend time chasing-up whatever’s needed. will prepare as much documentation as possible for you to make things as easy as possible for you, but we will need you to sign and send certain documents.

Now that you have a handy application checklist and know how the application process works, you should find it simple to secure your homeowner loan.

Related articles

should remortgage_shouldn't remortage_release equity

Why should I and shouldn’t I remortgage?

Remortgaging is the process of switching your existing mortgage to a new deal. This article will help you decide if remortgaging is the best option for you.

which credit option is best

Which credit option is best for you?

With the large amount of credit options that are now available such as credit cards, payday loans and mortgages, it can be confusing…

How to manage your debt

7 random things that can hit your credit score

Here are a few possible reasons your credit score could drop. Ever checked your credit score only for it to be lower than you’d expected it to be? Well, it’s surprisingly easy to hurt your..

New home building on the rise

Is new home building on the rise?

A 15% increase in new homes, but the UK still isn’t building enough homes. Back in November 2017, the UK government announced that 217,350 new homes had been built in England during 2016-2017..

two young people drinking tea and doing research

What’s a guarantor loan and why should I be interested?

If you’ve been turned down by lenders for a personal loan or consolidation loan and have ‘bad credit’, a guarantor loan may well be an option worth considering.

Can I afford to have a baby?

Can I afford to have a baby?

Most couples feel that they just can’t afford to have a child, but they usually somehow make it work. Here’s how you could plan ahead and get your finances sorted out before your baby arrives.

Will Brexit affect your mortgage?

Will Brexit affect your mortgage?

A mortgage broker such as can help you through the options. On 29 March, 2019 the UK is due to leave the European Union. We take a look at how Brexit could affect mortgages, most people’s biggest..

debt consolidation with bad credit

Debt consolidation with bad credit

Discover what debt consolidation is and whether it is the right option for you if you have a bad credit score. We’re here to help you make the correct choice…

4 ways you could use a bridging loa

4 ways you could use a bridging loan

Find out how this versatile loan could help you with everything from securing that dream home to financing a property development or even taking care of a tax payment.

Financing home improvements: homeowner loan or remortgage?

Would you like to make home improvements to create your dream home, but you’re not sure where you will find the money to put your plans into action?






What would you do if you had the extra cash?

Share This