Secured Loan Brokers – Complete Review
Representative example: If you borrow £34,000 over 15 years at a rate of 8.26% variable, you will pay 180 instalments of £370.70 per month and a total amount payable of £66,726.00. This includes the net loan, interest of £28,531.00, a broker fee of £3,400 and a lender fee of £795. The overall cost for comparison is 10.8% APRC variable. Typical 10.8% APRC variable
Representative example: If you borrow £34,000 over 15 years at a rate of 8.26% variable, you will pay 180 instalments of £370.70 per month and a total amount payable of £66,726.00. This includes the net loan, interest of £28,531.00, a broker fee of £3,400 and a lender fee of £795. The overall cost for comparison is 10.8% APRC variable. Typical 10.8% APRC variable
Are you thinking about getting a secured loan? Maybe you’re asking, “”What’s a secured loan?”” or “”How does it work?”” We’re here to help you understand. Each month, over 6,900 people come to us to learn about loans and money matters.
In this simple guide, we’ll explain:
- What a secured loan is.
- How a secured loan works.
- Why you might want a secured loan rather than an unsecured loan.
- How a secured loan broker can help you.
- If you should use a secured loan broker.
We know that loans can be a bit scary. Maybe you’re worried about the costs or what might happen if you can’t pay the money back. It’s okay to have these worries – many people feel the same. We’re here to give you the facts and help you make the best choice for you. Let’s start learning about secured loans together!
Can a broker get you a secured loan?
A credit broker might be able to get you a secured loan. Many people use a secured loan broker to outsource the task of finding the right secured loan for their needs, often in the hope that the secured loan broker will secure them a better loan deal.
Do secured loan brokers charge?
A secured loan broker provides a commercial service, and the aim is to make a profit. They charge for the service provided, but the structure of fees can differ between different credit brokers.
They may charge to search for your loan, or they may only charge if you agree to one of the loans they find. Alternatively, they may not charge you at all and will take a commission from loan payments from the actual loan provider. This means some of your loan payments will go to the broker and, therefore, increase the overall cost of your loan.
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What if a broker takes a commission from the loan provider rather than charging you?
If they only take a commission from the loan provider, it means the broker does not search the whole of the market but rather only loan providers they are partnered with. This could prevent you from getting a better loan deal elsewhere.
Lender |
APRC |
Monthly payment |
Total amount repayable |
|---|---|---|---|
| United Trust Bank Ltd | 6.34% |
£219.34 |
£26,320.83 |
| Pepper Money | 6.86% |
£220.24 |
£26,429.17 |
| Together | 7.99% |
£222.20 |
£26,664.58 |
| Selina | 8.45% |
£223.00 |
£26,760.42 |
| Equifinance | 9.95% |
£225.61 |
£27,072.92 |
| Evolution | 10.2% |
£226.04 |
£27,125.00 |
| Spring | 10.5% |
£226.56 |
£27,187.50 |
| Loan Logics | 11.2% |
£227.78 |
£27,333.33 |
Representative example: If you borrow £34,000 over 15 years at a rate of 8.26% variable, you will pay 180 instalments of £370.70 per month and a total amount payable of £66,726.00. This includes the net loan, interest of £28,531.00, a broker fee of £3,400 and a lender fee of £795. The overall cost for comparison is 10.8% APRC variable. Typical 10.8% APRC variable.
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Is it easier to get a secured loan through a broker?
It is easier to get a secured loan through a broker in the sense that the research is outsourced to a capable professional. But, the secured loan broker will not guarantee you will be approved for the loan. These people and companies do not have influence over loan provider affordability tests. If you have bad credit, you should expect to pay a higher interest rate if approved.
Should I consider secured loan brokers?
A secured loan broker does not guarantee you’ll get a better loan deal, so if you feel confident about searching for a secured loan independently using loan calculators and comparison sites, you may not need their help. However, if you have bad credit or don’t feel confident searching for secured loans on your own, using a credit broker may be worth the money.
If you do decide to use a secured loan broker, only use one that is authorised and regulated by the Financial Conduct Authority, which regulates and oversees brokers in the UK, ensuring they operate transparently and ethically.
This forum user on MoneySavingExpert wants to know whether they have to use a broker to get a secured loan. A secured loan broker is not required in order to get one, but they can be a helpful option.
Secured loans for all purposes
- Stuck paying high interest on credit card debts & loans?
- Looking to fund a home improvement project?
- Dreaming of finally taking the once-in-a-lifetime trip?
Polly
“This was by far possibly one of the nicest experiences I’ve had getting a secured loan.”
Reviews shown are for Loans Warehouse. Search powered by Loans Warehouse.
How quickly can I get a secured loan?
Secured loans take longer to be approved than unsecured loans in most situations. The lender may need to calculate the value of your property to know how much they can lend. The process of doing this can take time. On average, most secured loan applications take between 3-6 weeks to hear back on. Once approved, you should receive the funds within a couple of days.
To make the process go as smoothly and quickly as possible, you should make sure you are prepared by gathering all of the necessary documents you will need ready in advance.
Where is the best place to get a secured loan?
There is no single best place to get a secured loan. Banks, mortgage providers and online loan creditors can all offer competitive secured loan rates. The best place to get a secured loan depends on personal circumstances.
How to spot legal secured loan lenders
Legal secured loan lenders are authorised and regulated by the Financial Conduct Authority. You should see this information and related information displayed at the bottom of the lender’s homepage, if not every website page. You can always ask a debt charity to help you work out if a lender is legitimate and not a scam.
What banks offer secured loans in the UK?
Most UK banks offer a wide range of secured loans, not limited to secured personal loans, loans secured against the equity in your home (second charge mortgage), debt consolidation loans, home improvement loans, homeowner loans, car loans and much more.
Can I take out a secured loan?
You will be eligible to apply for a secured loan if you have the asset required to secure the loan in question and meet the lender’s other criteria, such as being of a certain age, etc.
Your loan application will be decided based on the affordability of the loan, which uses your regular income and ongoing debts to calculate how much of your monthly income would be needed to pay off all your debts. If this amount exceeds a certain proportion of your income (accounting for other essential expenses), then the loan would be deemed unaffordable, and you’ll be denied the credit.
On top of this, the lender will assess your credit rating. If you have poor credit, you can also be denied the loan.
Alternative financing options
It’s worth considering other credit options to see if they might be more suitable for you. These could be credit cards, credit unions, or Peer-to-Peer lending. In my experience, all of these options come with risks, still, so it’s important to do your research thoroughly.
