One of the primary features of secured lending is how quickly the funds can be accessed. In October last year, the average timeframe needed to underwrite and issue a secured loan was just 13 days which is fast when considering the sizeable sums issued by way of secured lending, compared to other forms of finance.
When it comes to getting the best possible deal on your secured loan, speed is however not necessarily everything. According to the Financial and Leasing Association, secured lending activity has been growing in the UK for some time and is fast heading for pre-COVID-19 levels.
As a result, competition between lenders is at its highest level for some time. There are fantastic deals to be found for all purposes but adopting the right approach and enlisting appropriate support is essential.
Who Can Qualify for a Secured Loan?
In order to qualify for a secured loan, you need to be able to provide assets (security) of sufficient value to cover the costs of the loan. In most instances, the asset used to secure the loan is the home of the applicant, or another property they own.
The amount of equity you have in your home will determine how much you can borrow. Your financial status and credit history may also be considered, though secured lending decisions are often based heavily on the provision of security.
How Competitive Are Secured Loan Interest Rates?
As with all financial products, a variety of contributory factors will influence the affordability of your secured loan. The current average rate of interest payable is approximately 3.8%, however, this does not mean that significantly lower (or higher) rates of interest are not quoted by lenders across the UK. The rate you can expect to be quoted on your secured loan will be determined by how much you need to borrow, how quickly you intend to repay the money, the value of your security for the loan and the lender you work with.
How Can I Ensure I Get the Best Possible Deal?
The quickest and easiest way to get an unbeatable deal on a secured loan is to enlist the support of an independent broker. A specialist broker will ensure your application exclusively targets the most competitive lenders on the UK market.
In addition, it is important to remember that many secured loan specialists in the UK operate exclusively via established brokers. Their products and services are not made available directly to the public, though often attach the most competitive interest rates and lowest overall borrowing costs available.
Comparing secured loans in their entirety with the help of an independent broker is the only realistic way of ensuring you get the best possible deal on your secured loan. For more information on any of the above or to discuss any aspect of secured lending in more detail, contact a member of the team at UK Property Finance today.