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How much could a Secured Loan cost?
Based on the value of your property and the amount outstanding on your mortgage, the maximum you could borrow is £99.
A Secured Loan of £99 could cost
This figure is an estimate based on a typical bank's lending criteria. To get a free quote for your personal circumstances, click the button above. The amount you can borrow and monthly repayment will depend on your personal needs, circumstances, affordability and other lender criteria. All lending is subject to application. Loan.co.uk is a credit broker and not a lender.
This is a Representative Example based on borrowing £99 over 99 years. Annual Interest Rate 99% fixed for 24 months, then variable. Representative APRC 7.9%, total amount repayable £71,625 which includes a broker fee of £2,995 and lender fees of £595.
What is a secured loan?
How much can I borrow with a secured loan and for how long?
What can I use a secured loan for?
Why would I choose a secured loan?
What is debt consolidation?
What should I consider when choosing a secured loan?
You should consider your:
- How long will you need to spread the repayments over?
- Current equity. How much money will you be able to borrow?
- Credit history. What interest rates will you be offered?
- Existing debts. What else will you need to repay?
- Some lenders have eligibility criteria that you will have to meet. For example, being a UK resident for at least 3 years or being within a certain age range.
Secondly, you should consider what type of secured loan you want:
- Short-term fixed rate secured loan. The interest rate is fixed for a predefined period, typically a few years, so you will always know how much you will have to pay each month. Once the fixed rate term ends you will be automatically transferred to a variable rate loan.
- Fixed for term secured loan. Similar to the short-term loan, except this loan’s interest rates are fixed for the entire term of the loan.
- Variable rate loan. The interest rate may fluctuate depending on the state of the market, the choices of the lender, and the Bank of England base rate. Because the interest rate isn’t fixed, it may appear lower when you apply. But it can increase, and it most likely will.
Alternatives to secured loans
Perhaps a secured loan isn’t the right loan for you. Here are some possible alternatives:
- Unsecured loan. You might be able to find an unsecured loan with a good interest rate to suit your needs. It’s unlikely you’ll be able to borrow as much as with a secured loan, but there’s no possibility of repossession.
- This can free up a lot of cash if you have a lot of equity. However, you will probably be paying interest for a longer period of time. It may not be the best option if you’re already satisfied with your current mortgage deal.
- Equity release. This option is only available if you are over 55. With equity release a lump sum is paid by the lender who, in return, takes possession of a percentage of your home, and get their money back when your house is sold or when you die.