Secured Loans Brighton
Secured loans that meet your financial needs
Our team can assist you when it comes to finding the right secured loan. There are many reasons for taking out a secured loan such as renovating your home or consolidating debts. Whatever the reason, with us by your side, we can help find the right product that gives you the confidence to make financial decisions that fit your circumstances.
What is a secured loan?
A secured loan is a type of borrowing where the lender requires you to use an asset (typically your home) as security or collateral. This means if you cannot repay the loan, the lender has the legal right to take possession of the asset to recover the money owed.
Unlike unsecured loans, where lending decisions are based largely on your credit score and income, secured loans give the lender added protection. Because the risk to the lender is lower, secured loans often allow larger borrowing amounts, longer repayment terms, and more competitive interest rates.
Secured loans are sometimes referred to as:
- Homeowner loans
- Second charge mortgages
- Collateral loans
Key features of secured loans
- Collateral Requirement – Your property or asset is used as security.
- Higher Borrowing Limits – Often from £10,000 up to £500,000 or more.
- Flexible Terms – Repayment periods can range from 3 to 30 years.
- Potentially Lower Interest Rates – Especially compared to unsecured loans or credit cards.
- Accessible with Different Credit Profiles – Even borrowers with less-than-perfect credit may qualify.
Your total monthly payment
Why would someone need a secured loan?
There are many situations where a secured loan can be the right financial solution. Below are the most common reasons:
1. Home improvements
If you’re planning to upgrade your home—such as building an extension, converting a loft, or installing a new kitchen—a secured loan can provide the significant funds required without disturbing your current mortgage.
Example:
- Sarah and James want to add a two-storey extension costing £70,000. Remortgaging early would trigger a large early repayment charge on their current fixed-rate mortgage. Instead, they take a secured loan at a competitive rate, keeping their existing mortgage untouched.
2. Debt consolidation
If you have multiple debts—credit cards, personal loans, store cards—a secured loan can be used to combine them into one monthly payment, often at a lower interest rate.
Example:
- Mark has £25,000 spread across various loans and credit cards with high APRs. By consolidating into a secured loan at a lower rate, he reduces his monthly payments and simplifies his finances.
3. Avoiding early repayment charges
If your mortgage is still within a fixed or tracker deal period, paying it off early could mean paying thousands in early repayment charges (ERCs). A secured loan can give you the extra funds you need without touching your main mortgage.
Example:
- Emma needs £50,000 for her business expansion but has 2 years left on her fixed-rate mortgage with a 4% ERC. She uses a secured loan instead of remortgaging, avoiding the penalty.
4. Business investment
Some self-employed individuals or business owners use secured loans to inject capital into their company, purchase equipment, or expand premises.
Example:
- David owns a catering business and needs £100,000 for new commercial kitchen equipment. A secured loan against his property provides the capital at a lower interest rate than an unsecured business loan.
5. Large one-off purchases
Secured loans can be a cost-effective way to fund large, planned expenses such as weddings, medical treatments, or overseas property purchases.
Example:
- Lisa and Tom are planning a destination wedding costing £35,000. Using a secured loan allows them to spread the cost over 10 years at an affordable monthly repayment.
Have a question?
Secured loans can be a powerful financial tool—allowing homeowners to access substantial funding for major life events, investments, or consolidating debt. The key is understanding both the benefits and risks, ensuring you can comfortably manage repayments, and choosing the right lender.
Whether you’re planning a home extension, restructuring debt, or investing in your business, a secured loan could be the right solution when used responsibly.
If you’re considering a secured loan, speak to Everest Mortgages for personalised advice. We can guide you through the process, compare competitive offers, and help you secure the right deal for your needs.
FAQs
What are the benefits of secured loans?
- Larger Loan Amounts – Perfect for substantial expenses.
- Competitive Rates – Lower than many unsecured borrowing options.
- Flexible Terms – Ability to choose shorter or longer repayment periods.
- Maintain Your Current Mortgage – Avoid unnecessary changes or penalties.
- Available to a Wider Range of Borrowers – Even with past credit issues.
- Fixed or Variable Options – Choose stability or flexibility depending on your needs.
What are the risks of secured loans?
While they have many advantages, secured loans also come with important risks:
- Property at Risk – If you fail to keep up repayments, your home could be repossessed.
- Longer Repayment Periods Mean More Interest – Even at low rates, paying over many years can mean a higher total cost.
- Fees and Charges – Some loans have arrangement, valuation, or broker fees.
- Variable Rates May Increase – If you choose a variable rate, repayments could rise.
What is the process of getting a secured loan?
- Assess Your Needs – Determine the exact amount and repayment term you can afford.
- Check Eligibility – Lenders will consider property value, outstanding mortgage, income, and credit history.
- Get a Valuation – Lender may arrange a property valuation to confirm equity.
- Application & Approval – Provide necessary documents (proof of income, ID, mortgage statement).
- Funds Released – Typically within 2–4 weeks.
How much can I borrow with a secured loan?
It depends on your equity (the value of your property minus your existing mortgage) and your ability to afford repayments. Many lenders offer from £10,000 up to £500,000 or more.
Do I have to own my home outright to get a secured loan?
No. You simply need enough equity in your home. For example, if your property is worth £300,000 and your mortgage is £150,000, you may have £150,000 in equity to borrow against.
Can I get a secured loan with bad credit?
Yes, many lenders offer secured loans to borrowers with poor credit histories, though the rate may be higher. The property acts as security, reducing the lender’s risk.
How is a secured loan different from remortgaging?
A secured loan (or second charge mortgage) sits alongside your current mortgage, leaving it untouched. Remortgaging replaces your mortgage entirely, which could trigger early repayment charges.
How long does it take to get a secured loan?
Most secured loans complete within 2–4 weeks, depending on the lender and how quickly you provide documentation.
What happens if I can’t repay?
The lender can take legal action, which could ultimately lead to repossession of the property. It’s essential to only borrow what you can afford.
Are the interest rates fixed or variable?
They can be either. Fixed rates give predictable repayments, while variable rates may change in line with market interest rates.
Can I repay my secured loan early?
Yes, but some lenders charge early repayment fees. Always check the loan terms.
Can I use a secured loan for anything I want?
In most cases, yes – common uses include home improvements, debt consolidation, business investment, and large purchases. However, lenders may have restrictions on certain uses.
Do secured loans affect my credit score?
Yes – as with any credit agreement, timely repayments can improve your score, while missed payments can damage it.
Example Scenarios of Secured Loan Use?
Home Renovation without Remortgaging
- A homeowner wants to add a £60,000 kitchen extension but is in year 3 of a 5-year fixed mortgage with a 5% ERC. A secured loan allows them to fund the project without disturbing the main mortgage.
Clearing High-Interest Debt
- A couple has £40,000 in credit cards and personal loans at 20% APR. They consolidate into a 10-year secured loan at 6%, reducing monthly payments and overall interest.
Business Expansion
- A shop owner needs £80,000 for new premises. A secured loan offers better rates than a standard business loan, and the repayment term fits the projected cash flow.
Private Medical Treatment
- An individual needs urgent private surgery costing £25,000. A secured loan enables immediate access to funds without dipping into savings or selling investments.