Often referred to as homeowner loans, secured loans are long-term borrowing products which are usually secured against a real estate asset, such as the borrower’s home or an additional property that they own. Most loans of this nature start at around £25,000 in value with an upper ceiling of around £250,000 – although this will depend entirely on the amount of equity available in your property, monthly income and your previous borrowing habits.
If you have a relatively good credit score, you will typically be offered a secured loan with interest rates of around 5% to 6%, although these rates will be significantly higher if you have defaulted on payments in the past, or you have been issued with CCJs. Secured loans are normally paid back in monthly instalments and the funds can be used for a wide range of purposes. Home improvement, debt consolidation and the financing of weddings, holidays and new vehicle purchases are some of the most common uses of secured borrowing products.
Applying for a secured homeowner loan with Donkey Finance could not be easier. Once you have worked out how much you can realistically afford to borrow and pay back, you can either use our online application form and request a call back, or get in touch with one of our FCA authorized advisors directly over the phone and let them guide you through the entire process. Once the first stage of your application is complete, we will search the entire market on your behalf in order to ensure you get the most competitive deal based on your individual needs and borrowing criteria.
Provided you are a UK resident, aged 18 years or older and either own your home outright, or you have a mortgage and there is enough equity left over to act as security for the loan, your chances of being approved for a secured loan with Donkey Finance are actually quite high. Even if you have had cash-flow problems in the past, or you are self-employed and have found it difficult to obtain finance elsewhere, we will search the entire market to find the most suitable product for your needs.
A decision can be made in a matter of minutes, and once your application has been approved, there is very little paperwork involved and the funds can be transferred directly to your bank account in a matter of weeks or days. Even if you have been turned down for credit in the past, because the loan is secured, you still have an excellent chance of being approved.
However, it is important to realize that there is a very realistic probability that your home will be repossessed if you deliberately avoid repaying the debt or you miss a number of payments owing to unforeseen circumstances. Of course, this only happens as a last resort and the vast majority of lenders will always work with you in order to resolve the issue of non-payment in the most amicable manner.