Documents Needed To Take Out A Secured Loan
When looking to take out a secured loan, all brokers will at some stage need supporting documents to complete the process.
We always try to keep things simple and give you an easy to digest list of the documents needed.
In most cases, you can expect to be asked for the following: –
- Fully completed application form
- Proof of income (3 months’ payslips or 2 years SA302s for self-employed applicants)
- 3 months bank statements
- Proof of ID
- Recent proof of address
- Details of your current mortgage
- Details of your current home insurance policy
If you’re unable to provide one or more of the above documents, don’t worry, just inform your advisor. They will be happy to consider your alternative options and let you know the best course of action.
Lending Criteria & Requirements
Lenders all work on a similar basis, but have distinctly different criteria. If your circumstances are a little bit out of the ordinary, it may be better to talk to us before selecting a product.
As your needs become quirkier, more specialist advice may be needed to find the most suitable product.
Most lenders will work on a maximum loan to value (the amount you are able to borrow in relation to the value of the property). Consideration will also be given to the affordability of the loan which is an important factor and the loan needs to be affordable now and in the future.
As there are so many lenders and products available, it would be too long winded and confusing to cover everything here. If you’re worried that you may struggle to meet lenders criteria, call us and we’ll run through your options over the phone.
We’ve helped many clients who thought they wouldn’t qualify for a loan, only to be accepted. Our advisors will be able let you know your options and the likelihood of your loan being agreed.
Reasons To Choose A Secured Loan
There are number of reasons to turn to secured loans when looking to borrow money, such as:-
- Reducing your monthly outgoings – When consolidating debts with a secured loan, monthly repayments can be reduced significantly. Such large reductions in monthly outgoings can finally put an end to the debt cycle of building up debts and then refinancing them.
- Reducing the interest paid – Where debts are being refinanced to reduce interest rates, but the monthly payments are affordable, we can save you thousands in interest. By reducing secured borrowing terms and keeping your monthly repayments the same, the total cost of borrowing often reduces significantly. Our expert advisors can explain this fully and give you a personalised overview of the potential savings.
- Borrowing for Business Purposes – Secured loans can be used to start a business or for important business purchases when other options may not be available.
- Avoiding early repayment charges – Early repayment charges, or redemption penalties are often due should you remortgage within a certain timeframe. Secured loans can be used as an alternative to a remortgage to avoid early repayment of your mortgage, and therefore avoid the charges.
- Home Improvements – When considering home improvements, such as a new kitchen, bathroom or even a loft extension, the cost can be prohibitive. The benefit of such improvements and the value added to your home make them very desirable and the cost can be raised from the equity subject to standard limits.
- Low interest rates – The interest rates offered are often much lower than can be achieved on unsecured loans. This can result in a significant cost saving.
Talk to an expert
Whatever your reason for requiring a homeowner loan it is important that you consider all of the options available and do not borrow more than you can reasonably afford to repay. By adding unsecured debts into a homeowner loan makes previously unsecured loans into a loan secured against your property. Adding fees or extending the term can mean that the overall cost increases. Our rate tables are updated daily and we therefore have current lender rates and criteria readily available to compare your options to find the most suitable.
If you’re not sure which product may be the most suitable for you, enquire online or call us on 01922 620008. We have a team of experienced secured loan advisors on hand to talk through your circumstances.
We are committed to securing the best deal for you and will provide you with a full written quote quickly.