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NatWest Secured Loans

Compare NatWest secured loans

Existing NatWest mortgage holders may be able to take advantage of additional borrowing. This allows you to take out a second loan secured against your home, separate to your existing mortgage. This type of loan is sometimes called a “second charge mortgage”.

Taking out a loan secured against your property usually allows you to borrow more and over a longer period than with unsecured borrowing. You may also be able to get a more favourable rate of interest, although this is influenced by a number of different factors.

Loan-to-value ratio

The amount you can borrow against your home will be determined based on a so-called loan-to-value (LTV) ratio. This represent the total value of your existing mortgage, plus the new loan you wish to take out, versus the market value of your property.

For example, if your home was worth £100,000 and a lender was willing to allow you an LTV of 75%, this would mean you could borrow a total of £75,000. If your existing mortgage was for £50,000, this would mean you could take out an additional loan for up to £25,000.

In general, lenders will tend to offer an LTV of up to around 80% and you will normally get better rates with an LTV less than 60%.

Benefits of NatWest secured loans

  • Borrow up to an LTV ratio of 90%
  • Make fixed monthly repayments
  • Repay over 3-35 years

Restrictions on NatWest secured loans

  • Minimum loan of £10,000
  • Borrower must be a maximum of 70 years old
  • If you do not keep up-to-date with your repayments your credit rating may suffer
  • Failing to repay your loan may result in your account being passed to a court-appointed bailiff for recovery of the debt

Get the best deal on secured loans

Our secured loan calculator can help you find the best deals on loans over £25,000. This tool allows you to sort the various offers from across the market to suit your financial needs and personal circumstances.

Alternatives to secured loans

For loans under £10,000 there are other options that may be more suitable, depending upon your exact requirements and personal situation.

Overdraft

For small amount of borrowing, it is often best to look at extending your overdraft first as this can be a quick and affordable way to get extra credit.

Credit card

It is often possible to get up to 40 months interest-free credit when opening a new credit card. This can offer an attractive way to borrow, as long as you pay the money off before the interest-free period ends. After this rates can be relatively steep.

Personal loans

If you only need to borrow a smaller amount over a short period, a personal loan can be a good fit. Many providers will offer an instant decision online, meaning this can be a very fast way to gain extra credit.

For an idea of how much you could borrow as an unsecured personal loan, take a look at the Post Office loans calculator which offers a representative example.

Remortgaging

Depending on how favourable the terms of your existing mortgage are, it may be more cost-effective to simply take out a new, larger mortgage. This will allow you to pay off your existing one and get the extra money you need in a single loan. However, this can end up being more expensive if your current mortgage offers a particularly good interest rate.

Bridging loans

For times when you need extra funds for a short period only, a bridging loan may be ideal. These are most often used by homeowners who wish to buy a new property before their existing one has sold. The downside is that bridging loans often have quite high interest rates, so this can be a very expensive form of borrowing if the loan is not quickly paid off.

Looking to borrow more than £25k?

When borrowing larger amounts, it is really crucial to get the best deal possible. This is because even a slight difference in interest rates or other conditions on the loan can end up making a big difference to how much you end up repaying.

If you are aiming to borrow in excess of £25,000 to make improvements to a property you own, our loan advisors can help. Simply call Fair Mortgages on 0117 313 7780 or use our contact form for a quick response.

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