Comparing options to suit your needs

Comparing options to suit your needs

We compare the cost of different options, helping you to make a decision that suits your individual needs and circumstances.

Homeowner loan

Are you a homeowner with a mortgage? Are you considering borrowing money to fund home improvements, such as a new kitchen or extension, but don’t know where to start?

A homeowner loan (also known as a secured loan) could be the answer. If you own your home, and have a mortgage on it, you may be able to borrow money using your property as security. This is ideal for people who can’t access additional funds as they are tied in to their current mortgage scheme, have an adverse credit history or have reached their maximum lending potential on their mortgage, for example. 

A homeowner loan could be the answer

The benefits of a homeowner loan include:

  • Quicker access to money compared to the re-mortgaging route

  • Borrow more on a lower interest rate with a secured loan compared with an unsecured loan

  • Can be used for any purpose (except gambling and legal)

  • You don’t need a perfect credit score

  • Potentially higher loan to value than a mortgage

  • There is an interest only option

  • No redemption penalties

Important considerations to a home-owner loan 

There are certain points to be aware of when contemplating a homeowner loan.

  • The interest rate on a secured loan can be higher than other borrowing options, e.g., the interest rate on a mortgage

  • Borrowing more than you need could lead to financial difficulty

  • You could end up paying more interest overall if you spread payments

  • Your credit score can be damaged if you cannot maintain repayments or make multiple applications

  • Your property may be repossessed if you don’t maintain repayments

  • Early repayment charges may apply

Think carefully about securing debts against your home. Your home may be repossessed if you do not keep up with repayments on your mortgage.

We look outside the box

We have the internal expertise to help you consider alternative options to a secured loan first, as you may wish to consider re-mortgaging as another way of releasing funds.

An open and honest approach

When discussing loans with you, whilst we will not be able to provide the advice in this area, we will aim to make sure you are aware of the risks involved before you make your final decision.

If a secured loan looks like it may be an option for you, then we will refer you to an independent specialist for the advice, as this service is offered by referral to a third party only.

Important information

  • We do not provide advice on homeowner loans (also known as secured loans). This service is offered by referral to a third party. 

  • There may be a fee for mortgage advice

  • Your home may be repossessed if you do not keep up repayments on your mortgage

  • We do not provide advice on equity release including lifetime mortgages and home reversion schemes and will refer to an approved specialist

  • Think carefully before securing any other debts against your home

Common secured loan questions

A secured loan is a type of loan that enables a homeowner with a mortgage to potentially borrow more money by using their home as collateral. Secured loans can also be known as homeowner loans or security loans.

Secured loans use a valuable asset as security, usually your property. This means there is less risk to the lender and you may be able to secure bigger loans and lower interest rates. There is also the option of a longer payback period meaning you’ll pay more interest but your monthly repayments will be lower.

A secured loan requires careful consideration as you risk losing your home if you can’t make the repayments. It can also negatively affect your credit score. When considering a secured loan, always think carefully before you commit as your circumstances might change in the future. The advisors at Mallory Financial Limited will be able to discuss your financial situation with you and walk you through your options.

Using a property as collateral means you can borrow more than you would normally be able to. However, the amount will depend on a few factors including: the value of your home, the amount of equity and your financial history.

The good news is that, if you have a poor credit rating, it can still be possible to get a secured loan. Providing your property as security presents the lender with less risk as the property could be repossessed if you are unable to keep up with loan payments. 

A secured loan uses an existing asset to secure the loan against – usually your property. The loan tends to be for larger amounts, over a longer period of time and the interest rates can be lower. 

An unsecured loan does not need an asset to secure the loan against. The amount that can be borrowed tends to be less and over a shorter period of time. The interest rates also tend to be higher than a secured loan due to the additional risk involved. 

If you are a homeowner, it might be worth considering remortgaging as a means of accessing a larger amount of money. However, this will depend on a number of factors including your credit record, the value of your property and how much equity you have.

At Mallory Financial Limited, we can search the market for deals suited to you and improve your chances of securing the right finance.

If you are searching for secured loans specifically then we do not provide advice in this area. However, as part of our service, we will look at your options as a whole, and if we determine that a secured loan is more suitable for you and your circumstances, we will refer you to an independent specialist for the advice.

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We are here to help

At Mallory Financial Limited, whether you’re looking for a mortgage, protection or a secured loan, we have specialist advisers to support you.
Contact us now to arrange your initial 30 minute consultation when we will gather your personal information and advise on the next steps.

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