What is a secured loans broker?
A secured loans broker acts as the middle point between you and the lenders who provide secured loans. Instead of applying to banks and finance companies one by one, a broker like MustCompare searches across a wide panel of trusted lenders to find the right deal for your circumstances.
Our role is to understand your needs, explain the options clearly, and guide you towards the most suitable secured loan without the stress of navigating it all on your own.
How do secured loans work?
A secured loan is a type of borrowing that is backed by something valuable you own, usually your home.
Since the loan is secured, lenders see it as lower risk and may be able to offer larger amounts or lower rates than you might get with an unsecured loan.
You borrow a set amount of money, agree a repayment term, and make regular monthly payments until the balance and interest are cleared.
If repayments are not made, the lender has the right to claim against the security, which is why it’s important to borrow responsibly and choose the right loan.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
What can a secured loans broker help me with?
At MustCompare, we help with a wide range of secured loan products designed for different needs including:
Second charge loans - these sit alongside your existing mortgage and are the second priority for monthly repayments
Debt consolidation loans - which bring all your debts into one manageable payment, including personal loans, bills and credit cards.
Home improvement loans - we help homeowners looking to fund property improvements, from new kitchens to extensions, with affordable home improvement loans.
Bridging loans - this offers short-term finance solutions to bridge the gap between the purchase and sale of something else, with a clear end date. Also often used for refurbishments.
Homeowner loans - that can be tailored to suit your personal situation and used for any purpose including home upgrades, holidays, business use, new cars, school fees and more.
Self-employed loans - source the best rates and terms for self employed people, even if you have been turned down by mainstream lenders.
What can be used as security for my loan?
The most common form of security is your property, usually your home. Some lenders may also accept other types of assets, but in most cases it is the equity you hold in your home that will be used.
Equity is the difference between the current value of your property and the amount you still owe on your mortgage. The more equity you have, the more borrowing options are usually available.
What is the eligibility criteria?
To apply for a secured loan, most lenders will look for:
- You are a homeowner or mortgage holder
- You are over 18 years old
- You live in the UK
- You have a regular income (employed or self-employed)
- You have enough equity in your home to support the loan
How do repayments work for secured loans?
Repayments are made in monthly instalments over an agreed term, which can range from a few years up to several decades depending on the product.
The amount you pay each month includes both the interest and a portion of the loan balance. Making repayments on time is essential to protect your home and your credit score.
Can you help me find secured loans for bad credit?
Yes, at MustCompare we work with lenders who understand that many people have had past financial difficulties.
While having bad credit can limit your options, secured loans may still be available because the loan is backed by your property. We will search for the best deals that match your situation and make sure you fully understand the terms before moving forward.
Why use MustCompare as my secured loans broker?
Choosing MustCompare means you gain access to a wide network of UK lenders without needing to make multiple applications yourself.
We provide clear, straightforward advice and support throughout the process, from initial enquiry to approval.
Our team is committed to finding you the most suitable loan at the best possible rate, while ensuring you understand every step. With MustCompare, you are not alone in the borrowing process.
FAQs
Do you charge fees as a secured loans broker?
Yes, our broker fee is typically 1% to 5% of the overall loan amount, which is only payable if your loan completes. Other fees may be applied such as set up or arrangement fees, depending on the lender you wish to proceed with.
Will you help me get the best rates for a secured loan?
Absolutely. We compare a panel of trusted UK lenders to ensure you are matched with the best rate available for your personal circumstances.
How soon can my loan be funded?
Secured loans are often approved within a few days and funded immediately. Overall, you may expect funds within 1-2 weeks of starting the application.
What information do I need to provide when applying for a secured loan?
You will usually need to provide:
- proof of ID
- details of your income and employment
- your mortgage information
- details of the property being used as security
Will my property be subject to a valuation?
Yes, the bank or lender you choose to proceed with may need to do a valuation of your property. With secured loans or second charge loans, these are usually arranged within a matter of days.
Can I lose my house through a secured loan?
Yes, if you do not keep up with repayments, the lender has the right to take action which could include repossession of your home. This is why careful consideration and advice are so important.
What happens if I do not repay my first instalment?
Missing any repayment can negatively affect your credit record and may result in charges or further action from the lender. It’s important to contact your lender immediately if you are experiencing difficulties.
Do you carry out credit checks when applying for a secured loan?
Yes, credit checks are usually required, but different lenders have different levels of flexibility. Having poor credit does not always mean you will be declined.
Do I need to own the property outright to be eligible for a secured loan?
No, you don’t need to own your property outright. As long as you have equity available in your home, you may be eligible.
What is the maximum I can borrow with a secured loan broker?
This depends on your equity, income, and lender criteria, but secured loans can range from a few thousand pounds to several hundred thousand.
Do I need to be a homeowner to be eligible for a secured loan?
Yes, secured loans are only available to homeowners or those with a mortgage.
Can people who are self employed be approved for secured loans?
Yes, self-employed applicants are often considered, though you may be asked for additional proof of income such as tax returns or business accounts.
What are the secured loan alternatives?
If a secured loan isn’t right for you, alternatives include personal unsecured loans, credit cards, or overdrafts. These options don’t require your home as security but may come with lower borrowing limits or higher rates.
