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Secured loans often offer a lower interest rate than other methods of borrowing
Searching for a loan with Norton Finance uses a soft search, which won’t affect your credit score
Secured loans can be used for most purposes, including home improvements, debt consolidation or business needs
Making regular repayments on time could improve your credit score in the long term
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A secured loan is a type of loan that is guaranteed by a specific asset that you own, such as your home or other property. Taking out a secured loan usually means you can borrow more money than you would otherwise have been able to at a lower rate of interest.
This is because potential lenders may see you as a more reliable borrower with less risk attached.
Every type of loan has its benefits and drawbacks. When you get a secured loan offer from a lender, you should be confident that you can afford to make repayments as scheduled or risk losing your home.
If you’re confident you can keep up with the repayments and want some flexibility in rates and terms, we may be able to help. With access to around 600 loan products, we can find something that suits your needs.
With a secured loan, you’ll often find that repayment periods are longer, interest rates are lower and credit amounts are higher. This is because the lender has a substantial asset to secure the loan against, reducing the risk they face in the case you miss a repayment. A secured loan will also allow you to keep your existing low rate mortgage product, which may attract early repayment charges if you settle it too soon.
If you regularly struggle to make repayments or can’t repay the loan, the property you secured the loan against may be used to cover the outstanding debt by lenders.
In addition, borrowing a larger amount over a longer period could mean you pay more interest in the long run. It’s important to consider what you can afford before you apply.
These are two quite different ways to access the cash you need. Only those who own their own home can access secured loans. In this position, you can typically access better rates and potentially borrow larger amounts.
Unsecured loans are more easily accessed if you have a strong credit rating. Lenders see these loans as lower risk, so don’t need the security to support a loan application.
Find out more about the differences between secured and unsecured loans.
Customers who own their home may consider a remortgage or equity release as a way of raising money. This would involve paying off your existing mortgage, which may result in a lower interest rate if you are not in a fixed rate period or on the mortgage lender’s standard variable rate (SVR). However, if you are still on a fixed low rate product, you may face an early repayment penalty
Your existing mortgage lender may refuse additional borrowing, especially if your circumstances have changed since taking out your original mortgage. Also, if you want the money quickly and do not have time to instruct the solicitors required for a remortgage, then you may find a secured loan to be a preferable option. It is important to always take advice from a reputable mortgage or loan broker to help you decide which is the right option for you.
Before you apply for a secured loan, there are some things you’ll need to think about to give your application the best chance of being approved by a lender.
A lender will need to know whether you can afford the monthly repayments on a loan secured by your home. They’ll ask about your income, expenses and debts.
The more equity you hold in your home, the less risk lenders will face. This could mean lower rates on your repayments.
You don’t need a spotless credit report to get a good rate, but lenders will usually want to see your borrowing history and any CCJs.
Some lenders may have a defined list of acceptable or unacceptable purposes, so it’s preferable to have a clear purpose in mind when you apply.
Lenders take several factors into account when deciding if you’re a good fit for a loan product, including:
Take a look at our article on loan eligibility for further advice on whether you can apply for a personal secured loan.
Credit history isn’t everything, but it is important. With loans secured on property, your credit score isn’t the only factor considered. Keep in mind that a better credit score might mean a lower interest rate.
SECURED LOANS - Rates start at 2.99% variable. We also have a range of plans with rates up to 65.2%, giving us the flexibility to help you find a loan that suits your needs.
Representative example: if you borrow £10,000 over 10 years at an Annual Interest Rate of 5.14% (variable), you will make 120 payments of £122.71 per month.
The total amount repayable will be £14,725.20. This includes a lender fee of £495 and a broker fee of £1,000, both of which have been added to the loan. The overall cost for comparison is 8.6% APRC representative.
The maximum APR is 65.2%.
Once you’ve begun your application online, we’ll be in touch by phone to go over a few details. We’ll ask for further information, including:
We’ll likely also discuss what you plan to use the loan for. Most importantly, we’ll need to gather some information about your home. You would only qualify for a secured loan if you’re a homeowner.
To make our call with you move as quickly as possible, it would help to have some details of your current financial situation to hand. Recent bank statements, payslips and a mortgage statement would all be useful in case anything comes up that we’d like to know about you.
Can I transfer a secured loan 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 secured loan 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.
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.
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.
Norton Finance can help find a loan that corresponds to your personal financial situation and your individual needs. And, because we compare loans rather than offering one product like a building society or bank, we can scour the full market for exactly that.
The flexibility of the loan products we find will let you borrow from £3,000 to £500,000, over any period between 1 and 30 years.
We’ll make an ‘in principle’ decision on your application within 24 hours of receiving it, and can make a direct payment in around 14 days.
With access to around 600 products from our panel of lenders, we offer flexibility and a straightforward loan process. There’s plenty of variety around maximum loan amounts and repayment terms, giving you control of your financial future.
How much can I borrow?
You can borrow from £3,000 to £500,000 through Norton Finance and our trusted panel of loan lenders.
How long are the repayment terms?
Choose anything from one to 30 years, to ensure you are comfortable as possible with your repayments.
What are the interest rates?
Interest rates will vary depending on your financial history and current circumstances. Homeowner rates start at 3.37%.
Are there any loan fees?
We compare loans rather than only offer our products. We receive a commission from the lender upon completion of a loan. We may also charge a broker fee of up to 12.5% of the loan amount borrowed, capped at £3,995. We do not charge broker fees on unsecured loans.
You can use personal secured loans for any purpose, but your lender might want to know what your intentions are. People tend to apply with a specific, large project in mind, such as:
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