Why Secured Loans?
Although Secured Loans do not currently fall under direct FSA regulation, Mortgage Advisers are increasingly considering them as a
'best advice' option when arranging re-mortgages for their clients. During recent years, many borrowers have enjoyed historically low Mortgage rates. For some people changing mortgage products now means either large penalties, or the exposure of their entire mortgage to a significantly higher rate of interest.
Pre recession, many consumers needing to raise funds were able to utilise unsecured finance for smaller loans (below perhaps £20,000), however in
the current climate this remains difficult even for many mainstream borrowers. Nowadays clients in any number of situations are being urged to consider Secured Loan options as a re-mortgage alternative. Typical scenarios include:
- Missed mortgage payments meaning any re-mortgage would expose total mortgage borrowing to a sub prime rate.
- Insufficient income to qualify for a re-mortgage under 'income multiple' rules.
- A low rate tracker or fixed rate mortgage, whereby a full re-mortgage would drastically increase both the mortgage rate and monthly repayment.
These reasons are not exhaustive. Secured Loan lenders can show flexibility in terms of employment, age, income or other areas where some Mortgage Lenders cannot. Secured Loan quotations carry no commitment; call today for more information or submit your DIP online.
The CCA.
Prior to 2008, high, and in some cases ambiguous redemption penalties associated with Secured Loans, meant that many Advisers were reluctant to recommend them as an option to their clients. Since April 6th 2008 however, 2nd charge Secured Loans (excluding those for business use) have fallen within the legal boundaries of the revised Consumer Credit Act, therefore becoming regulated by OFT guidelines. This has been good news for both Consumers and Brokers alike, providing above all else, improved clarity and consistency with regard to lending terms.
"The Financial Services Authority does not regulate secured loans"
If you would prefer to speak to one of our Punjabi and Urdu speaking team then they help you through the process.
The overall cost for comparison is Typical 13.41% APR variable. The actual rate available will depend upon your circumstances. Ask for a personalised illustration.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED
IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Consolidating debts may increase the term and total amount payable. Available to applicants over 18 - subject to status.
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