Santander Secured Loans
Compare Santander Secured Loans
If you already have a mortgage with Santander and need some extra funds, you may be allowed to take out an Additional Loan. This will be an entirely separate loan on top of your existing mortgage.
This type of extra borrowing is sometimes referred to as a “second charge mortgage” and can allow you to borrow more and for longer than with an unsecured loan. You may also find that you are offered a better rate with a secured loan, although this will depend on a variety of different 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.
The actual amount you can get with additional borrowing will be determined by the value of your home and how much debt is already leveraged against it. This is generally expressed as a loan-to-value (LTV) ratio.
Your LTV represents the percentage of the market value of your home that a lender will be willing to let you borrow. So, if your home is worth £100,000 and your lender is willing to allow you to borrow up to £75,000, this gives you an LTV of 75%.
If you already have a mortgage for £50,000, you would therefore be able to borrow an extra £25,000. Bear in mind that most lenders will not want to exceed an LTV of 80% and you are likely to be offered a much better deal with an LTV below 60%.
Benefits of Santander secured loans
- Borrow £5,000 or more (up to an LTV ratio of 85%)
- Repay over 5-35 years
- Fixed monthly repayments
- No product fees
- No early repayment charge
Restrictions on Santander secured loans
- You must have an existing Santander mortgage
- You cannot ever have been declared bankrupt of been subject to an Individual Voluntary Arrangement
- Your credit rating may be negatively affected if you fail to keep up repayments
- Failing to repay your loan means your account may be passed to a county court-appointed bailiff for recovery of the debt
Get the best deal on secured loans
If you are aiming to borrow in excess of £25,000, our secured loan calculator can help you identify the best deals available. Simply input your borrowing needs and personal financial circumstances to see the most appropriate offers for you.
Alternatives to secured loans
For amounts under £10,000, there are different options that may offer you better value. There are also alternative routes worth considering for borrowing larger sums.
The overdraft on your current account may offer an affordable way to borrow small sums. Extending your overdraft can be very fast and straightforward, with many providers offering instant decisions.
If you are looking for a way to borrow in the short and medium term, credit cards are worth considering. Many offer interest-free credit for up to 40 months, but bear in mind rates can be high after this introductory period, so it is best to pay off the balance as soon as possible.
If you are unable or unwilling to take out a secured loan, an unsecured personal loan may be an ideal alternative. This usually involves smaller amounts lent over shorter periods, but can be a reasonably quick and simple way to borrow.
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 allows you to combine your existing mortgage and the money you need to borrow into a single, new mortgage. This can be simpler and more cost-effective than taking out a separate loan, but depends on how the interest rate you are offered on your new mortgage compares to the old one. If your existing mortgage offers a particularly favourable deal, remortgaging can actually end up being more expensive.
Need a short-term loan to cover a temporary gap in funds? This is what bridging loans are designed for. They are most commonly used by homeowners who need to buy a new property while still waiting for their old one to sell. Bridging loans tend to come with relatively high interest rates, so are generally only advisable if you are confident of being able to pay them back quickly.
Looking to borrow more than £25k?
The more money you need to borrow, the more important it is that you get a good deal. Even a small different in interest rates soon adds up with larger loans.
Fair Mortgages specialist loan advisors can help you get the best deal on loans over £25,000 for property improvements. Simply call us on 0117 313 6058 or use our contact form for a quick response.