Before you start your journey towards getting a secured loan, the first thing to do is to find out if you are eligible.
Whilst each lender has its own criteria, they all usually require you to provide security against the loan, which is typically in the form of a property you own.
We explain more about the eligibility guidelines that are usually applied to secured loans and some of the other factors involved in the process.
To be eligible for a secured loan there are few basic criteria that most lenders will want you to meet. This includes being:
Each lender’s eligibility criteria are different, so there may be additional factors that need to be considered, especially for more complex applications.
At Willows, we know that everyone’s circumstances are unique, which is why we take time to understand your situation so we can match you with the appropriate lender.
Get in touch with a member of our team if you are unsure about your eligibility for a secured loan.
If you have a less than perfect credit history, we do work with several specialist lenders who may be able to help.
These lenders tend to take a wider perspective when it comes to assessing applications from people with irregular credit backgrounds.
In practice, this means that instead of just making a decision based on your credit score, they will look at other factors, especially your affordability.
Crucially, their processes also include human input, so the final decision on your application will not be accepted or declined by an automated algorithm.
Being a homeowner is one of the most important criteria assessed by any lender. This is because your property will be used as security against the loan, which means you can use your:
Even if you rent your current residence, provided you own another property, you should still be eligible to apply.
It is important to note that your property will be at risk of repossession if you are unable to maintain the monthly payments on a secured loan.
You can make what is known as a ‘joint application’ as long as both parties have legal ownership of the property. This helps to ensure that responsibility for the repayments is shared between both people.
If one person is unable – or unwilling – to maintain the repayments, then the other person becomes liable for the full debt. So, it is worth giving this aspect serious consideration before you apply.
Lenders may also accept a single application if one owner has sadly passed away, although a copy of the death certificate will likely be required.
If the property is owned by one individual but both applicants want to be on the application, this is acceptable with most lenders.
You can speak with a member of the Willows team at any time about a proposed joint application and what the requirements would be.
This is a key part of any secured loan application, as the lender assessing income and affordability is a top priority
In most cases, lenders will ask you to provide information such as:
The income information you will be asked to provide will depend on your circumstances. For example, if you’re applying for a loan secured on a buy-to-let property, rental income or projected rental income (as assessed by a valuer) will be required.
Lenders will be happy to accept applications from people who are self-employed, providing they can also satisfy the other parts of the lending criteria.
Our lenders will usually assess your application if you are a:
Other types of workers may also be accepted by lenders, such as contractors and umbrella workers.
If you’re not sure about your eligibility for a secured loan due to your employment status, get in touch with the Willows team and we’ll be more than happy to help.
There is no set credit score figure that will ensure you can get a secured loan.
Whilst it is true that having a good credit score can improve your chances and potentially allow you to access better rates, there are several other factors involved that will influence the lender’s final decision.
On the other hand, applicants with poor credit can be matched with specialist lenders who may choose to ignore their credit score when reviewing the application.
All lenders will check your credit report as part of the review process to determine what kind of deal they can offer. When you apply for a secured loan, there are two types of credit checks carried out:
If you have any concerns that your credit status may affect your application, speak with a member of the WIllows team and we’ll get you up to speed.
Taking out a secured loan should not affect your existing mortgage, as they will be processed as two separate payments.
When your application is being reviewed, we may need to contact your mortgage provider for a statement or to obtain consent. This is standard practice and typically granted by most lenders.
If you decide to remortgage in the future, you will need to inform your secured loan provider, especially if you are changing mortgage companies or seeking additional borrowing.
Getting a quote won’t affect your credit score
We’re extremely proud to be rated ‘Excellent’ for our service standards year after year. Since 2008 we’ve helped thousands of customers across the UK to find the right finance for their needs – no matter how complicated the circumstances.
Taking out a secured loan is a big financial responsibility, and you may find it helpful to have access to a friendly team of experts who can guide you through the process.
Willows has helped countless customers to find the right deal for them and can offer detailed support every step of the way.
To find out more about how we can help, you can speak with a member of our team today by calling 01656 766 158.
If you have a question – we’d be happy to talk to you – simply call us…
(Mon-Fri 9am-8pm, Sat 10am-1pm)
At Willows Finance we ensure your personal information is kept secure and confidential.
PRIVACY OF YOUR INFORMATION
At Willows Finance Ltd, we appreciate that your privacy is extremely important to you. With this in mind, we have put in place a number of measures to ensure that any personal details we obtain from you as a result of visiting this website is processed and maintained in accordance with accepted principles of good information handling and also in accordance with the Data Protection Act 1988.
This statement provides you with details of the type of information we may hold about you, how we obtain and use information and how we protect your privacy.
Willows Finance Limited
Brocastle, Bridgend, CF35 5AS
Authorised and regulated by the Financial Conduct Authority
Firm Reference Number: 670052
Company Number: 6678545 (Registered in England and Wales)
This document outlines the services we provide. If you need clarification, please contact us at 01656 766158.
We offer first and second charge regulated mortgage contracts for business or personal use.
Other finance options may include:
Regulatory Status:
We offer an advised mortgage broking service and provide enough information for you to make an informed decision.
We are not independent financial advisers. Free debt advice is available from the Money Advice Service.
You can view our privacy policy at: https://willowsfinance.co.uk/privacy-cookie-policy/.
Lenders may also have their own privacy policies which will be provided to you.
We charge a broker fee upon loan completion. The average fee is approximately 5%, depending on your situation.
Fee details:
No refund is offered after completion. You may pay upfront or add the fee to your mortgage. Fees and commission will be detailed in your ESIS and Mortgage Agreement.
You will receive a Mortgage Agreement and an ESIS document detailing:
You may cancel your application anytime before completion without any charge. Mortgages cannot be cancelled after completion.
Missing payments can lead to charges, repossession, and negative impacts on your credit rating.
Consolidating debt may result in higher long-term interest. Securing debt against your home increases risk.
Your home may be repossessed if you do not keep up repayments on a mortgage or other loan secured on it.
If you wish to complain, contact us at:
Willows Finance Limited
Brocastle, Bridgend, CF35 5AS
Tel: 01656 766158
You may be able to refer your complaint to the Financial Ombudsman Service.
We are covered by the FSCS. You may be eligible for compensation of up to £85,000 per person per firm for mortgage advice and arranging.
More info: www.fscs.org.uk
After processing your application, you’ll receive a Mortgage Agreement and have a 7-day reflection period.
Contact us during this period with any questions. To proceed, sign and return the agreement.
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