Is it Possible to Secure a £150,000 Loan?

If you are a property owner with substantial equity in your home, you might explore the option of utilising this equity as collateral for obtaining a £150,000 loan. It is essential that your income be adequate to cover the loan repayments and any other financial obligations you may have.

The interest rate you are offered may be influenced by your credit history, but the reassuring news is that secured loans for “homeowners” are frequently extended to borrowers with either favourable or unfavourable credit records.

What are the potential uses for a £150,000 loan? The scope of applications for a £150,000 loan is diverse, encompassing possibilities such as:

  • Expansion Loan: Secure a loan of £150,000 to assist in covering various business expenses, including the acquisition of new equipment.
  • Land Acquisition Loan: If you are interested in purchasing land for development purposes or are ineligible for a mortgage, a land loan of £150,000 could be an option to finance the purchase.
  • Bridging Finance: Explore the option of a bridging loan, designed for homeowners seeking financial support while purchasing a new house, especially if they haven’t sold their existing home or need funds to cover the expenses of a new property without relying on a mortgage.

What is the minimum equity requirement for a £150,000 loan?

Every loan is subject to a specified maximum loan-to-value (LTV) ratio, indicating the highest permissible borrowing amount in relation to the property’s value.

For instance, if your house is valued at £400,000 and your outstanding mortgage is £150,000, a homeowner loan with a maximum LTV of 75% could potentially allow you to borrow an additional £150,000.

It’s crucial to note that each application is evaluated independently, and while having adequate equity doesn’t guarantee approval, it does ensure that your application will be taken into consideration.

How do our loans work?

Get the upfront funds you require with a loan and enjoy the flexibility of repaying it over time. Whether you’re planning a unique getaway, eyeing a new vehicle, or dreaming of a modern kitchen, a personal loan can bring these aspirations within reach at a more manageable cost.

Eligible for UK residents aged 18 and above, loan rates are contingent on factors such as the loan amount, duration, and individual situations. Approval is subject to status.

Our range includes unsecured personal financing options, ensuring that if we extend a loan to you, it won’t be tied to your residence, vehicle, or any other assets. This gives you the freedom to allocate the funds towards your specific needs.

Flexible repayment options – Choose a loan term ranging from 12 to 120 months, depending on the loan amount and purpose. Keep in mind that certain loan purposes may have a capped maximum repayment period.

Tailored borrowing – Select the precise amount you require, whether for substantial expenses or minor ones. We cater to various needs and allow you to be precise about the loan amount, down to the last pound.

Transparent interest structure – Experience a fixed interest rate throughout the loan’s duration. At the loan’s initiation, we calculate the total interest for the entire term and include it in your loan amount. Monthly interest is then determined by applying the APR-based interest rate to your reduced loan balance after each repayment. This calculated interest is added to the loan amount and divided across the monthly repayments.

Estimate costs – Utilise our loan calculator for an estimated cost based on your desired loan amount and term. Keep in mind that the actual interest rate may vary depending on individual circumstances. Our offered APR ranges from a minimum of 6.1% to a maximum of 34.5%.

Timeline – Upon approval, you’ll be sent crucial documents within a week. Thoroughly review, sign, and send them back to us.

For online applications, an instant decision awaits you. If deemed eligible, you can electronically sign the financing agreement. Subsequently, we employ Faster Payments to seamlessly transfer the funds directly to your bank account.

Upon satisfactory review of the provided information, your loan will be officially sanctioned, and the funds will be seamlessly deposited into your designated bank account.

Payment breaks

Ease the burden by delaying the commencement of your loan repayments, especially when facing additional expenses. When applying for a loan, you may qualify for a deferred payment option before initiating your monthly repayments.

This grace period is exclusively applicable at the outset of your loan. If your request for this feature is approved, the initial payment will be deferred until the third month following the loan’s issuance.

During the payment deferment, interest will accrue, and the overall loan duration will be extended by two months, resulting in an additional two months’ worth of interest payments. Please carefully review your offer documentation for a comprehensive understanding of the terms associated with the payment deferral.

Paying back a £150,000 loan

Your monthly installment is conveniently handled through a direct debit from the account where the loan is credited. The inaugural payment is scheduled for one month after the loan is issued, aligning with the date you specified in your application.

Predictable payments – Rest assured, all loans from our institution come with fixed rates. This implies that your monthly direct debit payments will remain consistent throughout the entire loan tenure, ensuring a straightforward and uncomplicated repayment process.

Consequences of late payments – In the event of a delayed payment, a fee of £12 will be levied each time, along with an additional £12 if a default notice is issued.

Early loan repayment option – Certainly. You have the flexibility to settle your loan ahead of schedule. However, opting for early repayment incurs a charge equivalent to up to two months’ worth of interest.

When you apply for a loan, we will conduct a credit reference check, and a credit score will be created based on the information you provide and your credit reference information. This will assist us in determining whether or not we can lend to you. We will then notify you of the decision and the status of your application.

APR & the annual rate of interest

The annual percentage rate (APR) signifies the comprehensive expense of borrowing, expressed as a percentage of your outstanding amount, spanning a year. Computed from the annual interest rate and inclusive of any initial fees, the APR provides a means to evaluate and compare the expenses associated with various loan and credit propositions.

Meanwhile, the annual interest rate represents the proportion of interest applied to your loan amount, expressed as a percentage, over the course of a year.

How long can you take out loan for with Donkey Finance?

Choosing the right type of loan significantly impacts the timeframe and feasibility of financial commitments. Each loan type—bridging, mortgage, and development finance—serves distinct purposes and thus the loan term typically varies depending which product is chosen.

Bridging Loans
Bridging loans are designed to provide short-term financing solutions for individuals or businesses looking to secure property quickly, typically within 0 to 24 months, though usually offered for 12 months.

Secured Loans
Secured loans are backed by collateral such as property or assets, offering lenders security in case of default, making them suitable for longer-term financial commitments. Most secured loans are offered for over 5 years; simply use our payment calculator to work out your monthly payment, along with the interest rates attached to the loan you take out.

Mortgages
Mortgages are long-term loans used primarily for purchasing property, commonly structured over 10 to 30 years in the UK, allowing borrowers to spread out repayments and manage costs effectively. Borrowers can utilise mortgage calculators to estimate monthly repayments based on interest rates and loan terms.

Getting a loan if you have bad credit

Donkey Finance specialises in helping individuals secure loans even if they have a history of bad credit. Donkey Finance aims to find suitable loan options that meet their clients’ needs. Individuals with bad credit can still access competitive loan rates and flexible repayment terms. Whether for personal expenses, debt consolidation, or business ventures.

Loans for the self-employed

We recognise the challenges faced by self-employed individuals in traditional lending environments and we aim to provide accessible and competitive loan solutions that empower self-employed individuals.

An example of our £150,000 loan:

Loan amount

£150,000

Monthly repayments

£2,869.07

Length of agreement

5 Years

Total amount repayable

£172,144.41

Representative

5.7% APR

Total loan ‘cost’

£22,144.41

The above example is indicative for those with good credit.
The rate displayed is for illustration purposes only and could change when provided a quote for your loan.
View information about other popular requested loan sizes:

The UK’s most popular loan amounts
£15,000 loan £50,000 loan
£20,000 loan £60,000 loan
£25,000 loan £70,000 loan
£30,000 loan £80,000 loan
£35,000 loan £100,000 loan
£40,000 loan £150,000 loan
£45,000 loan £200,000 loan