Barclays Secured Loans
Compare Barclays Secured Loans
If you own your own home, you may be able to apply for a secured loan on top of an existing mortgage.
This is sometimes referred to as a “second charge mortgage” and will be separate to any existing debt leveraged against your home.
You will normally be able to borrow more and for longer with a secured loan and may be offered a better interest rate than on an unsecured loan. However, the exact deal you are offered will depend on a number of influencing factors.
Second mortgages can be used for a range of different purposes including:
- Second home purchase - e.g. For holiday or investment purposes
- Home improvements - Converting or extending a property to improve your current property?
- For moving house - You may be looking for short term finance up to 12 months to break a mortgage chain or to ensure you don't miss out on a desired property - bridging loans "bridge the gap" between selling and buying a property.
- Investment property - e.g. buy to let or for flipping
- Auction purchase - Buying property at auction or buying land
- Commercial property - e.g. mixed use such as a flat above a shop or where you looking to buy a commercial property
- Buying property abroad - A lot of our clients buy property abroad particularly in Spain and France using UK property as security.
Lenders decide how much debt borrowers can secure against their properties based on a loan-to-value (LTV) ratio. This represents that total value of credit offered versus the market value of the property in question.
So, if you want to borrow £25,000 on top of an existing mortgage of £50,000, and your home is worth £100,000, you will have a loan-to-value ratio of £75,000/£100,000 or 75%. Most lenders will want to keep your LTV below 80% and will tend to offer better deals when your LTV is under 60%.
Benefits of Barclays secured loans
- Borrow up to £250,000
- Repay over 1 to 25 years
- Getting a quote will not affect your credit rating
- Make fixed monthly repayments
Restrictions on Barclays secured loans
- You must be 18 or over
- You must be a UK homeowner
- You must have the permanent right to reside in the UK
- You must have a household income of at least £8,000
- You may have to pay and arrangement fee
- Your credit rating may suffer if you do not keep up with your repayments
- Failure to repay your loan may cause your account to be passed to a county court-appointed bailiff to recover the debt
Get the best deal on secured loans
We offer a secured loan calculator which makes it quick and simple to find the best offers on secured loans over £25,000. You can easily filter results based on your personal financial circumstances and borrowing needs, allowing you to see the best deals for you from across the market.
Alternatives to secured loans
A secured loan may not always be the best option for you, especially if you need to borrow less than £10,000. There are various other options that you are advised to look into before making a decision.
Extending your overdraft can be a fast and easy way to unlock extra funds. It is usually only suitable for borrowing smaller amounts over shorter periods.
If you need to quickly secured funds for short or medium term borrowing, a credit card may be a good choice. Many providers offer interest-free credit for up to 40 months, although rates after this introductory period can be high.
An unsecured personal loan can be a fairly simple, fast way to borrow smaller amounts over shorter periods. For those without property, or who don’t want to tie more debt to their home, it can be an attractive choice.
If you do have a mortgage already and need to borrow more, it may make sense to take out a new, bigger mortgage. This can allow you to pay off your existing one and have extra money left over for whatever you need. Depending on how good a deal you have on your current mortgage, remortgaging can leave you better or worse off financially, so this must be considered.
For times when you have a temporary shortage of funds, a bridging loan is likely to be a sensible choice. They are most often used by people who need to buy a new property while waiting for an existing one to sell.
It is important to be aware that bridging loans generally come with quite high interest rates, so can get very expensive if not paid off promptly.
Smart borrowers know that they need to get the very best deals on their loans, especially when borrowing larger amounts. This is because the more you borrow, the bigger difference any variation in interest rates will make to the final amount you repay.
If you need to borrow £25,000 or more for property improvements, Fair Mortgages can help you get the best deal for you. Simply call us on 0117 313 7780.