A secured loan is a second charge mortgage based on your ability to repay backed by your property asset. As an alternative to remortgaging secured loans are an increasingly popular choice, especially if you want to retain an attractive mortgage deal.
Apply for a secured loan for any purpose. Remember that you are placing your home at risk so make sure that you can afford the repayments.
Secured loans can be for larger sums and longer repayment periods compared with unsecured loans. Bank loans are still quite hard to obtain for many people, especially if they have had issues with their credit in the past.
If you’re looking to obtain credit, our secured financing can be used for a range of purposes;
- Consolidation of existing debts, which could save you money by reducing the amount you are paying
- Turning multiple debt payments with different lenders into one manageable monthly payment
- To carry out home improvements, which is a great way to increase the value of your property
- Bigger personal items such as cars or caravans can be financed using a secured loan
- Paying for a very special occasion, such as a wedding
Whatever is happening in your life right now, whatever purposes you are looking to borrow for, find out why a secured loan could be the right choice for you. We’ve put together some frequently asked questions, to help you make an informed decision before choosing to take out a secured loan.
What are secured loans?
A secured loan uses collateral, such as your home, as security for the repayments. If repayments are defaulted on, as the borrower, you could lose your home. Secured loans are also referred to as ‘homeowner loans’ or ‘second charge mortgages’, as this type of loan ranks after your mortgage for security. Homeowner loans are regulated agreements by the Financial Conduct Authority.
How do secured loans differ from unsecured loans?
Secured loans are are backed by your home so if you fail to maintain your monthly payments, your home may be at risk. Therefore lenders will often accept an application for a secured loan which they may decline for an unsecured loan. Lenders can be more flexible with secured loans and will usually offer larger sums over longer periods. Unsecured loans do not place your home at risk.
Would I qualify for a secured loan?
In order to apply for a secured loan with Arrow Loans you must fit our criteria:
- Aged 21-68
- A homeowner occupier
- Live in England or Wales
- Be able to afford the repayments comfortably from normal income
How do I apply for a secured loan?
We are dedicated to being open and honest about the procedure for getting a secured loan through us. Therefore we have put together a guide which outlines our loan application process to help you understand every aspect.
How much can I borrow?
Secured loans for homeowners through Arrow Loans are available for people who are looking to borrow up to £25,000[
How long is the repayment term?
The amount borrowed can be customised to whatever suits you best. Arrow Loans offers secured loan repayments up to 180 months (15 years), which means the loan can be repaid over a term whereby you find the monthly repayment amount affordable.
Is there a lower interest rate with a secured loan?
Secured loan interest rates are usually comparably lower than those of an unsecured loan. This is because secured loans can be taken out over a longer period of time. The amount of borrowing and the term length influences the interest rate.
Are there any fees to pay?
We are committed to telling our customers about our fees. There are NO fees or costs payable before the loan is issued. When your loan is issued there will normally be an arrangement fee of up to £495 added to your loan amount. This fee will vary as it is intended to cover our costs, such as legal and valuation, on a case by case basis. The amount you repay is clearly stated on your loan quote.
Can the loan be paid off earlier than agreed?
Yes! Our loans are regulated by the Financial Conduct Authority so you can settle early, overpay and make lump sum payments. This can reduce the amount of interest paid on the loan, ultimately saving you money.
Our representative rate for homeowner loans is 19.9% APR – at least 51% of successful applicants receive this rate
The Representative APR includes the cost of arranging your homeowner loan as well as the interest charge on the money lent. You will be told the APR at the commencement of the statutory cooling off period – at least 8 days before you receive your loan documentation to sign.