What are Secured Loans?

A secured loan is quite simply a personal loan where the free equity in your property is used as security. To borrow funds using a secured loan you need to own your home and already have a mortgage in place, the secured loan sits behind your mortgage and is therefore often referred to as a ‘second charge’. As an independent finance broker we deal with a panel of lenders and search the market on your behalf for the best deal.

A secured loan can be used for a wide range of purposes, for example:

  • Debt consolidation – reduce monthly credit commitments by up to 50%
  • Capital spending – home improvements, car, school fees, holiday
  • Tax bill – stop HMRC pressure
  • Protect a low mortgage rate – your mortgage lender may wish to increase your current rate if you apply for a further advance or seek to alter terms of the mortgage
  • Settle IVAs, Trust Deeds (in Scotland) and Bankruptcies
  • Deposit for additional investment properties
  • Credit repair

Key product features:

  • Rates from 6.9%
  • Loan to value – max 85%
  • Loans from £3,000 to £200,000 (or higher in exceptional circumstances)
  • Terms – from 3 to 30 years
  • Age range – from 18 to 80 (at the end of the loan term)
  • Self employed applicants without accounts are welcome
  • Many income sources are acceptable
  • Some adverse credit can be considered
  • Interest only is available with some lenders
  • Buy to let or investment properties can be used as security
  • Interest only is available on selected plans

Buying Trust Units

Owning a unit of the trust means you own a proportional share of all the investments within the portfolio. It also means that, for a fraction of the cost, you can have diversified investments (including stocks and/or bonds) that may normally require $100,000 or more to purchase on their own.

When to Consider

Unit investment trusts may be suitable for most investors, whether they’re conservative, more aggressive or somewhere in between. That’s because unit trusts provide diversification of quality stocks in a convenient and affordable package without losing the liquidity many investors need.

Risks of Investing

Unit investment trusts are not actively managed. Securities in the trust will not be sold to take advantage of market conditions. The trust may continue to hold securities even though their market value and dividend yields may have changed.