Secured Loans Online – All You Need to Know & best Options
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
In this friendly guide, we’ll explain:
- Whether you can get a secured loan without a broker.
- How to compare loans online.
- Whether you can trust online secured loans.
- If online secured loans are cheaper.
- What credit score you need to get a secured loan online.
Many of our team members have been in your position before, looking for answers around a potential secured loan, so we know how to help you figure things out. Let’s get started and discuss your options.
Can you get a secured loan online?
You now have more options than ever to find and compare secured loans online. The internet has made it easier for anybody to access a wide range of products and services, and secured loans are no different.
Not only is it possible to browse secured loans online, but you can also submit your application online too. This can increase the speed of getting a decision.
Can I trust secured loans online?
There are scores of legal and legitimate secured loans online to choose from. However, there are also scam loan companies trying to get your attention. To make sure you avoid any scams, only consider a secured loan from a company that is authorised and regulated by the Financial Conduct Authority.
This should be stated at the bottom of the loan provider’s website homepage – if not every web page they have.
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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Are secured loans online cheaper?
There is no evidence to suggest that secured loans online are any cheaper than taking out a secured loan through a bank – which are also available online!
In fact, lesser-known online lenders tend to have higher interest rates than banks. On the other hand, it could be easier to get approved for a secured loan from an online lender over a high-street bank. It all comes down to your personal circumstances and your credit score. You should do your own research at the time of reading.
How can I compare secured loans online?
Lenders make it easy for you to compare different secured loans easily. Most loan providers add a loan calculator to their website, which enables you to enter how much you want to borrow and how long you want to repay. The calculator will then crunch the numbers using a representative example interest rate to show your projected monthly payments including the interest.
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Remember that the representative example rate is just that – an example. It is calculated based on just over half of successful loan applications. Nearly half of applicants will be offered a different loan.
To get the representative example rate or better, you will need to have good finances and a good to excellent credit score.
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.”
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What credit score do I need to get secured loans online?
There is no minimum credit score you need to have to get a secured loan across all lenders. Each lender applies its own affordability tests and credit score assessment, meaning someone could be rejected with one lender and approved at another with the same credit score.
In fact, your credit history is just one aspect of your application; it will also depend on a range of other factors.
Nevertheless, to get a lower interest rate you should have a good or excellent credit report.
Can you get an online secured loan with bad credit?
It is possible to be approved for a secured loan with a bad credit rating. Because the loan has been secured with collateral, lenders are usually more open to lending through a secured loan over an unsecured loan to people with bad credit. There are even secured loans online advertised specifically for people in this situation.
How long does the application process take?
Applying online can save you time having to wait for an appointment with a bank. But the time it takes to get a decision on your application can still take over one month.
Taking out a secured loan may require an appraisal of your asset, especially if you are borrowing against home equity. It can take time to get the valuation complete, which slows down the application process.
Unsecured loans are decided on much quicker and can even be approved on the same day as application.
I can’t afford my online secured loan – help!
Despite affordability checks and the best intentions, our circumstances can change and make loan repayments unaffordable. If you have lost your job or are unable to work due to sickness or injury, it is best to let the lender know. They will try to work out a new arrangement that benefits everyone and prevents them from repossessing your asset.
Hiding from the problem can only make things worse. Get free debt advice for further support.
Can you get a secured loan without a broker?
You don’t have to use a credit broker if you want to borrow using a secured loan. Many people search and find secured loans online or speak with banks to find the deal that works for them. The growing rate for lenders offering secured loans online has made finding your own loan easier than ever.
However, you may still want to consider using a credit broker to find a secured loan for you. The best credit brokers can take over the task at hand, saving you time, stress and sometimes even money. There is no guarantee that the broker will find you a cheaper secured loan. If you are looking for significant credit – through a homeowner loan for example – it may be more beneficial to use a credit broker.
