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RBS Secured Loans

Compare RBS secured loans

Customers who already have a mortgage with RBS may be able to apply for an additional loan. This second loan will be separate to your existing mortgage with its own interest rate and repayment terms.

This kind of borrowing is often referred to as a “second charge mortgage” and can allow you to borrow significantly more, and for a much longer period, than with unsecured loans. You may also be able to get a better interest rate if your borrowing is secured, but various other influences will affect this.

Loan-to-value ratio

The amount you will be able to borrow as an additional secured loan will depend on the value of your home and how much debt you already have leveraged against it. Lenders make decisions about this using a method known as a loan-to-value (LTV) ratio.

Your LTV will be calculated based on the value of your existing debt, plus the extra amount you wish to borrow, versus the market value of your home. Thus, if you have a mortgage for £50,000, want to borrow an extra £25,000 and your home is worth £100,000 the LTV would be £75,000/£100,000 or 75%.

You will tend to get much better interest rates with an LTV below 60% and many lenders will not want to go about a maximum LTV of 80%.

Benefits of RBS secured loans

  • Borrow up to 90% of your home’s value
  • Repay over 3-35 years
  • Fixed monthly repayments

Restrictions on RBS secured loans

  • Minimum loan of £10,000
  • Maximum age for borrowers is 70
  • You must be an existing RBS mortgage customer
  • If you do not keep up with repayments it may negatively affect your credit rating
  • Failure to repay your loan may result in your account being referred to a county court-appointed bailiff to recover the debt

Get the best deal on secured loans

If you are considering applying for a secured loan in excess of £25,000, our secured loan calculator can make your life much easier. Simply select the amount you wish to borrow, answer some basic questions about your financial circumstances and see the best deals for you from across the market.

Alternatives to secured loans

Need to borrow less than £10,000? Or want to look at alternatives to securing your debt against your home? These other sources of credit may be of interest.

Overdraft

The overdraft on your current account can be one of the fastest and easiest ways to get additional credit. If you only need a relatively small amount, discussing an overdraft extension with your provider is worth trying.

Credit card

Many credit cards offer interest free credit for up to 40 months, ideal for short and medium term borrowing. Interest rates can be high after this introductory period, however, so it is best to pay off the balance before this becomes a factor.

Personal loans

Unsecured borrowing usually limits you to smaller amounts taken out over shorter periods. The advantage is that applying is usually a fairly fast and straightforward process.

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

Taking out a new, larger mortgage can allow you to repay your existing mortgage while leaving enough left over for your additional needs. This can simplify your finances, but whether you will end up better or worse off than with an additional secured loan on top of your current mortgage depends on how good a deal you had on your original mortgage.

Bridging loans

If you are planning for a temporary shortfall in your finances, a bridging loan may be the best solution. This allows you to borrow significant amounts of money over a relatively short period and is commonly used by homeowners who need to buy a new property before the old one has sold.

Rates on bridging loans tend to be quite high, so this sort of borrowing can become expensive if the loan is not paid off promptly.

Looking to borrow more than £25k?

If you are looking for borrow more than £25,000, the interest rate you pay should be of particular concern. This is because the more you borrow, the more of a difference even a slight variation in interest rate can make.

Are you a property owner planning to borrow £25,000 or more for property improvements? If so, our team of specialist loan advisors can help you get a great deal. Simply call us on 0117 313 7780 or use our contact form for a quick response.

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