Secured Loan

With a Secured Loan/ Second Charge Mortgage, money can be raised for any personal reason such as home improvements, debt consolidation, a holiday, school fees or even a wedding.

What is a Secured Loan?

A secured loan, also known as a homeowner loan or a second charge mortgage, enables you to borrow a sum of money usually from £30,000 to £250,000.  This loan type uses your home as collateral/security against the repayments. They’re only available to those people who own their own home and have a mortgage.

Most unsecured loans only go up to £30,000 so this is often the starting point for secured loans.  If you’ve been rejected a personal loan (unsecured loan), then a homeowner loan may be the option for you as they are easier to approve because your home acts as security.

Credit History

If you have a good credit history, this type of loan will be very comparable if not cheaper than other loan types.  However, even if you have a bad credit history, then a secured loan could be a better option. Due to the house acting as security, we are more likely to get you accepted, although interest rates will invariably be slightly higher.

Reason to choose a Secured Loan

Keep your existing mortgage rate and avoid paying early repayment fees

If you have a low mortgage rate and it may not be possible to remortgage to the same or lower rate, then keep hold of it and look at the option of a secured loan to provide you with the extra money you need.  Also, many lenders charge hefty early repayment fees, but these are again avoidable with a secured loan. Our professional advisers can inform you of whether it is beneficial to take out a secured loan and not raise money through a remortgage.

Loans for any purpose

Secured loans can be used for most purposes. Due to the larger loan amounts and longer repayment terms available popular loan purposes can be home improvement, home extensions and debt consolidation.  There are many other reasons allowed, so please speak to our professional advisers today.

Lower interest rates & Repayment periods

Secured loan interest rates are usually comparably lower than for unsecured loans because they’re borrowed over a longer term. Headline interest rates on top secured loans start between 5 and 6%.

Secured loans are typically repaid over 5-25 years.  This will allow smaller repayments over a longer period, but you must consider the longer the interest period, the more interest you will repay in total.

Talk to our experts


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029 2166 0550

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Why Choose us?

  • Impartial advice from qualified independent brokers who are experts in commercial mortgages

  • Our initial consultation is FREE

  • We have access to all the commercial mortgage products on the market – not just those from one or two lenders

  • We have years of expertise in brokering commercial mortgages

  • Our financial advice is fast, friendly and tailored to your business needs

  • Cornerstone is registered with and regulated by the Financial Conduct Authority

  • We help clients with good and impaired credit histories

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Where to find us:

Unit F, Copse Walk, Cardiff Gate Business Park, Cardiff CF23 8RB

029 2166 0550

info@cornerstonefinance.co.uk