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.
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You may also have heard of this type of loan as a “second charge mortgage”.
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.
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.
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.
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.
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.
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.
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.
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 6058 or use our quotes form for a quick response.