Frequently asked questions about secured loans
Can I transfer a loan secured against a property to another property?
Some lenders might allow you to transfer a loan to another property, while others won’t. Fees may apply, and you would still be expected to keep up repayments during the transition period.
How does a loan secured against property affect my tenants?
If you’re a landlord, a secured loan might affect your tenancy agreement. Read our guide to loan eligibility to find out more.
Can I pay off a loan early?
You can pay off the outstanding balance on a loan at any time. However, many lenders will charge an Early Repayment Fee. Depending on the size of the loan, this might make early repayment a less desirable outcome, so make sure you can afford to stick to the repayment plan from the outset.
Can I take a payment break?
Some lenders may offer you the chance to take a ‘payment holiday’ on your loan. However, you should make sure this won’t change your financial situation before agreeing to their terms. Payment holidays might show up on your credit report, so it’s important to discuss it with your lender first.
Will it affect my mortgage?
In most cases, no. Your secured loan lender will likely need permission from the mortgage lender before they can place a charge on the property. But apart from that, provided you keep up with the repayments on both, a secured loan won’t affect your mortgage.
How easy is it to get secured loans with bad credit?
Not all lenders in the UK accept people with bad credit histories. This means there are fewer options for a secured loan with bad credit. But they are available, and if you make your payments on time, you can improve your credit score. In general, it’s easier to find unsecured loans with bad credit, for smaller loan amounts below £5000.
Are business loans secured or unsecured?
Secured and unsecured business loans are available to help you get your company off the ground or to expand. As with normal loans, unsecured business loans offer higher interest rates, but they’re not usually secured against an asset.