Secured Business Loans
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A secured loan can be an option for business owners who need to raise capital, invest in property, purchase land or reorganise their business finances.
Depending on the lender and the purpose of the borrowing, you may be able to raise funds against equity in your home, an investment property or commercial premises.
However, using a secured loan for business purposes and taking out a loan secured against a commercial property are different arrangements. Each can involve different lenders, eligibility requirements and types of finance.
At Willows Finance, we work with lenders that can consider a range of business and investment purposes, including capital injections, certain tax liabilities, buy-to-let deposits and land purchases.
We can also help identify specialist finance options for commercial and semi-commercial properties.
Yes. Some secured loan lenders will consider applications from business owners who want to release equity from a property and use the funds to support their business.
For example, you may want to raise capital to:
Invest in equipment, stock or other business assets
Support cash flow or working capital
Expand or improve business premises
Inject additional funds into an existing company
Reorganise business finances
Settle certain outstanding business tax liabilities
The lender will want to understand how the money will be used and whether the proposed borrowing is affordable.
Where the loan is secured against your home, the lender may assess your personal income, expenditure, existing borrowing and overall financial circumstances.
Some lenders may also request information about the business and its financial position.
Not every lender accepts every business purpose, so it’s important to establish what the funds will be used for before applying.
Our advisers can check which lenders may accept your intended business use and explain what information will be needed.
Important: If you secure borrowing against your home to fund a business, your home could be repossessed if you do not keep up repayments.
Yes. Some lenders will consider secured loans where the funds are intended to help purchase a buy-to-let property.
For example, you may be able to release equity from your existing home or another suitable property to raise some or all of the deposit for a rental investment.
This can be relevant to first-time landlords who want to purchase their first investment property or existing landlords looking to expand their portfolio.
However, the lender providing the mortgage on the buy-to-let property will also need to accept the proposed source of the deposit.
If you’re borrowing against your home to fund a buy-to-let deposit, the secured loan repayments will form part of your existing financial commitments.
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Potentially. We work with lenders that can consider borrowing intended to settle certain outstanding tax liabilities.
The lender will usually need to establish the nature and amount of the debt, how the borrowing will be used and whether the repayments are affordable.
There may be additional questions where the tax liability relates to an ongoing business or where the debt suggests wider financial difficulties.
Different lenders can have different rules about using loan funds to pay HMRC liabilities.
If you need to raise money for an outstanding tax bill, tell us the type of liability and the amount involved so we can establish which lenders may consider the application.
Yes. Some lenders may consider a joint secured loan where two people own the property but only one is involved in the business receiving the funds.
For example, a couple may jointly own their home, while only one partner owns the business that needs additional capital.
The lender will want to establish that both applicants understand the borrowing arrangements and the implications of securing the loan against their property.
Depending on the lender’s criteria, the applicant who isn’t involved in the business may be advised or required to obtain independent legal advice.
This helps ensure they understand the risks and their obligations before agreeing to the loan.
Both borrowers may be responsible for the repayments, even if only one benefits directly from the business investment.
If you’re considering a joint application to raise funds for one person’s business, our advisers can explain which lenders may consider the arrangement and whether additional legal advice is likely to be required.
Yes. Existing landlords may be able to use equity in a suitable property to raise funds for renovations, refurbishments or improvements.
For example, you may want to update a rental property, improve its condition or carry out work before letting it to new tenants.
The finance available will depend on the property being used as security, the proposed works and the lender’s criteria.
If the project involves major structural work, an uninhabitable property or a short-term funding requirement, bridging finance may be more suitable than a conventional secured loan.
If you tell us what work you’re planning and which property you intend to use as security, we can help identify the type of finance that may be appropriate.
Yes. Some specialist lenders can consider semi-commercial properties as security for borrowing.
A semi-commercial property, sometimes called a mixed-use property, combines residential and commercial accommodation.
Common examples include:
A shop with a flat above it
A newsagent with residential accommodation
An off-licence with a flat attached
An office or commercial unit with living accommodation
A building containing both business premises and residential units
Lenders may want to establish how much of the property is used for residential purposes and how much is used commercially.
Some lenders use a 50% residential-use threshold within their criteria, although the way that percentage is measured and the classification of the property can vary.
The lender may also consider whether the residential and commercial parts have separate access, how the commercial premises are occupied and whether any rental income is generated.
A maximum loan-to-value (LTV) limit may apply, depending on the lender and the property’s characteristics.
If you own a property with both residential and commercial accommodation, our advisers can review how it is used and identify lenders that may consider it.
Yes. We work with specialist lenders that can consider commercial property as security for borrowing.
This may include premises used for retail, office, industrial or other business purposes.
However, the type of property, its use and its value will influence which lenders may be available.
Some lenders apply:
A minimum loan amount
A maximum loan-to-value (LTV) limit
Restrictions on certain commercial property types
Requirements relating to the property’s condition, occupancy or rental arrangements
The lender may also want to understand whether the property is owner-occupied or let to a commercial tenant.
Some properties can be more challenging than others. For example, care homes may require specialist consideration because of the nature of the business and property.
Where conventional commercial lending isn’t suitable, another specialist finance product may be worth considering.
If you’re looking to borrow against commercial premises, we can establish which lenders may accept the property type and explain the information required.
Potentially. Care homes can be more challenging to use as loan security, but specialist lending options may be available.
Lenders may need to consider the property’s specialist use, its valuation and the business operating from the premises.
The requirements can differ significantly from those for a standard office, shop or warehouse.
If you own a care home and want to raise funds against it, our advisers can check whether a suitable specialist lender may be able to consider the property.
Yes. Some lenders can consider secured loans where the money will be used to purchase land. This could include land intended for agricultural, farming, investment or personal use.
The important distinction is whether you’re raising the funds against an existing property or asking the lender to accept the land itself as security.
For example, a homeowner may want to release equity from their house to purchase a neighbouring field or a separate parcel of land.That is different from applying for finance secured directly against the land being purchased.
If the land itself is the proposed security, the lender may need to consider planning permission, access, current use and valuation. Specialist land or bridging finance may be more appropriate.
Where you’re borrowing against an existing property to fund a land purchase, the lender will assess affordability, your credit profile and whether the intended purpose is acceptable. Tell us what land you want to buy and which property you intend to use as security, and we can help establish the available options.
Getting a quote won’t affect your credit score
We’re extremely proud to be rated ‘Excellent’ for our service standards. We’ve helped thousands of customers across the UK over the last 15 years to find the right finance for their needs – no matter how complicated the circumstances. And we look forward to helping you.
Finding the right finance doesn’t have to be complicated – so, we’ve made the process clear and simple. Whether you’re applying for a Secured Loan, Mortgage or Bridging Finance, we’ll compare the market for the best options that meet your criteria and provide you with a fast no-obligation quote.
The initial enquiry takes under 2 minutes to request an in-principle loan or mortgage quote.
We compare lenders to provide your best options in minutes with no affect to your credit score.
Happy with your quote – we make completing the process simple and easy for the lender to approve.
We’re here to help every step of the way and ensure you get your money quickly.
The amount available will depend on the type of finance, the value of the property being used as security and the lender’s criteria.
For a secured loan against an existing property, lenders will consider the property’s value and any outstanding mortgages or other secured borrowing.
They will also assess affordability, credit history and the intended use of the funds.
For commercial or semi-commercial property finance, additional criteria may apply, including minimum loan sizes and maximum loan-to-value limits.
Some lenders may also take account of rental income, business performance or the property’s commercial use, depending on the product.
Our advisers can review your borrowing requirements and property details to identify which lending options may be suitable.
The documents required will depend on whether you’re borrowing against your home, a buy-to-let property or commercial premises, and how you intend to use the money.
Depending on the lender, you may need to provide:
Details of the property being used as security
Information about existing mortgages and secured loans
Evidence of income and financial commitments
Details of the business and the intended use of funds
Business accounts or other financial information, where required
Information about any outstanding tax liabilities
Details of a proposed investment property or land purchase
Rental or occupancy information for commercial and semi-commercial premises
Relevant legal documentation, including independent legal advice where required
Not every application will require all of these documents.
We can help you establish what’s needed before proceeding with a lender.
The best way to find favourable secured loan deals is to use an independent broker, who can offer you more variety and options to suit your circumstances. At Willows we only search for loans that will work with your finances and can offer support ahead of your affordability assessment and throughout the entire application process.
To find out more about secured business loans, or if you have any questions you need to ask, get in touch with the Willows team on 01656 766 158 and we’ll be more than happy to help.
Whether you’re raising capital for your business, purchasing an investment property, buying land or borrowing against commercial premises, the right finance will depend on both the purpose of the loan and the property being used as security.
At Willows Finance, we can help you understand the available options and identify lenders whose criteria may be suitable.
We can also establish whether a conventional secured loan, commercial mortgage, bridging loan or another specialist finance product is more appropriate for your circumstances.
Request a free, no-obligation quote or call 01656 766 158 to discuss your plans with one of our experienced advisers.
Getting an initial quote won’t affect your credit score.
If you have a question – we’d be happy to talk to you – simply call us…
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Our Rating
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: 06678545 (Registered in England and Wales)
This document explains the services we provide, the range of lenders and products we consider, how mortgage advice may be provided, and how Willows Finance may be paid. Please read it carefully before proceeding with an application.
If you need clarification about any part of this document, please contact us on 01656 766158.
Willows Finance arranges first and second charge mortgage products. Depending on the circumstances of the application, these may include:
We also arrange both regulated and unregulated bridging finance.
Not every product will be suitable or available to every customer. The products considered will depend on your circumstances, borrowing requirements, purpose of the borrowing, property, intended use of the property and the relevant lender criteria.
Depending on your circumstances, Willows Finance may:
If you are looking to increase borrowing secured on a property which already has a regulated mortgage, there may be different ways of raising the additional funds. Depending on your circumstances, these may include:
Where applicable, we will make you aware of these alternatives before proceeding. The options we are able to assess or advise on will depend on the service being provided and the lenders available to us.
The regulatory status of a mortgage or bridging loan depends on the circumstances of the transaction, including the property, how it is or will be occupied, the purpose of the borrowing and the customer’s circumstances.
Our business includes:
We will identify the regulatory status applicable to your application and explain the service and protections that apply. The protections available to you can differ depending on the type of mortgage or loan.
The range of lenders and products we consider depends on the type of finance you require.
We offer a comprehensive range of second charge mortgages from across the relevant market using a representative panel of lenders. We review our panel regularly to ensure that it remains sufficiently broad and representative. We do not consider products that are only available by applying directly to a lender.
We only offer first charge mortgages from a limited panel of 13 lenders. We consider the first charge mortgage products made available to us by Kensington Mortgages, The Mortgage Works, Aldermore, United Trust Bank (UTB), Together, Masthaven, West One, Norton, Bluestone, Vida, Pepper Money, Mansfield Building Society and Nationwide Building Society.
We do not offer every first charge mortgage available from across the market.
We consider products from a range of lenders available to Willows Finance for the relevant transaction.
Consumer Buy-to-Let and unregulated Buy-to-Let applications are considered within the relevant first charge, second charge or bridging route, depending on the structure of the transaction.
We do not provide a whole-of-market service and do not claim to consider every mortgage or secured finance product available in the UK. Our assessment is based on the lenders and products available through our lender and distribution arrangements.
Where the applicable regulatory rules require us to identify the lenders whose products we offer, the relevant lender list will be provided to you in a durable medium as part of the initial disclosure for your application. A lender list is also available on request where applicable.
The service provided will depend on the lender, product and application route identified for your circumstances.
Where Willows Finance provides the mortgage advice, we provide an advised mortgage broking service. We will obtain information about your needs and circumstances, assess the lending options available within the scope of our service and, where appropriate, make a mortgage recommendation.
We will make it clear where Willows Finance provides the mortgage advice and recommendation.
We may also provide a packaging service. This is a non-advised administrative service under which we may collect information and supporting documents, complete administrative checks, liaise with the relevant parties and submit or progress an application.
When we provide a packaging service, we do not assess the suitability of the mortgage, provide mortgage advice or make a personal recommendation. Any regulated mortgage advice or recommendation will be provided by the appropriately authorised intermediary responsible for advising you.
Our packaging service is not a regulated advisory service. However, the mortgage itself and any arranging activity connected with it may still be regulated and subject to the applicable regulatory requirements. We will explain the nature and regulatory status of the service we are providing before you proceed.
For some applications, particularly certain second charge mortgage applications, our sourcing exercise may identify a route where the subsequent mortgage advice is provided by another regulated mortgage intermediary.
In these cases, the Willows Finance service may include:
After the introduction, the receiving intermediary may take over the detailed application, advice and recommendation process. We will make it clear where this type of referral arrangement applies.
Where our sourcing process identifies Evolution Money Limited as an appropriate route and we introduce your application to Evolution Money, Willows Finance will not provide the regulated mortgage advice or make the final mortgage recommendation in relation to the Evolution mortgage.
Following the introduction, Evolution Money Limited will take over the detailed application and advisory process. Evolution Money will assess your needs and circumstances and will be responsible for any regulated mortgage advice and recommendation it provides in relation to the Evolution mortgage.
Willows Finance remains responsible for the service it provides before and in connection with the referral, including its initial assessment, sourcing and introduction activity.
If you are experiencing financial difficulty, or if you are considering borrowing to consolidate existing debts, free and impartial debt advice is available from MoneyHelper and other free debt-advice organisation.
MoneyHelper: www.moneyhelper.org.uk
You should consider obtaining free debt advice if you are unsure whether further borrowing or debt consolidation is right for you.
We process your personal information in accordance with our Privacy Policy. Where we introduce you to a lender or another intermediary, that organisation will process your information in accordance with its own privacy information.
Willows Finance Privacy Policy: willowsfinance.co.uk/privacy-cookie-policy/
The way Willows Finance is paid depends on the lender, product and application route. We may receive a fee paid by you, commission paid by a lender or another third party, or a combination of these. We will explain the basis on which we will be remunerated in connection with your application.
Where Willows Finance off an advised service our fees are split into two parts. A fee for the advice you receive and a fee for the processing of the application to completion. Both of these fees can be added to the loan rather than paid upfront or you have the option of paying them in advance. We do not arrange loans below £10,000.
For the advice the fee is as follows;
For a first charge mortgage, our advice fee is 5% of the amount borrowed, subject to a minimum fee of £625 and a maximum fee of £1,250.
For a second charge mortgage, our advice fee is 5% of the amount borrowed, subject to a minimum fee of £625 and a maximum fee of £1,750.
For a first charge mortgage, our processing fee is 5% of the amount borrowed, subject to a minimum fee of £625 and a maximum fee of £1,250.
For a second charge mortgage, our processing fee is 5% of the amount borrowed, subject to a minimum fee of £625 and a maximum fee of £1,750.
| Service | First charge | Second charge |
|---|---|---|
| Advice fee | 5%, min £625, max £1,250 | 5%, min £625, max £1,750 |
| Processing fee | 5%, min £625, max £1,250 | 5%, min £625, max £1,750 |
On borrowing of £10,000 5% would be £500, but the minimum fee for advice and processing means that we would charge £625 for each to £1250 in total.
On borrowing £20,000 the total fees would be £2,000
On borrowing £50,000 the maximum fee means that we would charge a total of £2500 for a 1st charge mortgage and £3500 for a 2nd charge mortgage.
If your mortgage or loan completes following an introduction made by Willows Finance, we will receive commission from the lender or another third party in the distribution chain unless we tell you otherwise. Different lenders may pay different amounts and may use different commission models.
Commission models may include:
The availability or amount of commission does not determine which lender we consider appropriate for your circumstances. Where applicable, we will tell you that commission will be received.
For an MCD regulated mortgage (a mortgage within the Mortgage Credit Directive rules), where the exact amount of commission is not known at the time of the initial disclosure, we will tell you that the actual amount will be disclosed later in the ESIS. Where applicable and on request, we will also provide information about how commission levels vary between lenders offering the mortgage being considered.
Where we introduce you to Evolution Money, the commercial arrangement is different from a broker fee charged directly by Willows Finance.
Under the current Evolution arrangement, Evolution Lending charges a Product Fee equal to 10% of the net loan advance, subject to a maximum of £5,000. If the mortgage completes, Evolution pays the corresponding amount to Willows Finance as commission/remuneration for the sourcing, distribution and introduction service.
The amount of the product fee and the amount of remuneration payable to Willows Finance will be disclosed to you in the relevant mortgage documentation before completion.
Example: on a £10,000 net advance, a 10% Product Fee would be £1,000. The actual Product Fee and the amount of commission payable to Willows Finance will be set out in the relevant Evolution mortgage documentation before completion.
If you choose to add a Product Fee or other fee to your mortgage, interest will be charged on that amount while it remains outstanding, increasing the total amount you repay.
Where a Willows Finance fee is payable only on completion, it will not become payable if the mortgage does not complete. Any fee payable before completion, third-party costs and the circumstances in which a fee is refundable or non-refundable will be explained where applicable.
Fees which have become payable following completion are generally non-refundable unless the relevant contractual terms, applicable law or regulatory redress require otherwise.
Before you become bound by a regulated mortgage, you will receive the relevant mortgage illustration or European Standardised Information Sheet (ESIS) and the lender’s offer documentation as applicable.
These documents contain important information about the proposed mortgage, which may include:
Please read these documents carefully. If anything is unclear or does not reflect your understanding, contact the firm responsible for the advice or recommendation before proceeding.
You may tell us that you no longer wish to proceed with an application before completion. Whether any third-party cost is payable or refundable will depend on its own terms.
For an MCD regulated mortgage (a mortgage within the Mortgage Credit Directive rules), the lender will provide a binding offer with a reflection period of at least seven days. You may normally accept the offer during that reflection period if you decide to proceed.
Once a mortgage has completed, there is generally no right simply to cancel or withdraw from the mortgage. You may have a right to repay the mortgage early in accordance with its terms, and an early repayment charge may apply.
Always check the early repayment section of the ESIS and mortgage offer before completion if early repayment or regular overpayments are important to you.
If you miss or make late payments, the lender may apply charges, and your credit record may be affected. Continued failure to maintain payments may result in enforcement action and ultimately repossession of the property used as security.
If you are experiencing financial difficulty, contact your lender as soon as possible and consider obtaining free independent debt advice.
Consolidating existing debts into a mortgage can reduce monthly payments but may increase the total amount of interest you pay if the borrowing is repaid over a longer period.
Debts which are currently unsecured may become secured against your home. Extending the repayment period may mean that you pay considerably more overall even where the monthly payment is lower.
Interest rates on variable-rate mortgages can increase, which may increase monthly repayments and the total amount repaid.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOAN SECURED ON IT.
If you are dissatisfied with any aspect of the service provided by Willows Finance, please contact us:
Willows Finance Limited
Brocastle, Bridgend, CF35 5AS
Telephone: 01656 766158
Email: [email protected]
We will investigate your complaint in accordance with our complaints procedure. If you remain dissatisfied with our final response, or in other circumstances where you are eligible to do so, you may be able to refer your complaint to the Financial Ombudsman Service.
Financial Ombudsman Service: www.financial-ombudsman.org.uk
Where another regulated intermediary has provided the mortgage advice or recommendation, complaints about that firm’s advice should normally also be raised with that firm. You can still complain to Willows Finance about the service provided by Willows Finance.
The Financial Ombudsman Service can generally consider complaints about regulated or otherwise covered activities, including certain activities that are ancillary to them. It may not be able to consider a complaint that relates solely to an unregulated product or service and has no connection with a regulated or otherwise covered activity. Whether a complaint falls within its jurisdiction will be determined by the Financial Ombudsman Service based on the individual circumstances.
Willows Finance Limited is covered by the Financial Services Compensation Scheme for eligible regulated activities. If an authorised firm is unable to meet an eligible claim, compensation may be available from the FSCS.
For protected home finance mediation, the current compensation limit is 100% of an eligible claim up to £85,000 per eligible claimant, per firm. Eligibility depends on the circumstances of the claim and the applicable FSCS rules.
FSCS protection does not generally apply to a claim arising solely from an unregulated product or service, including any packaging service that falls outside regulated home-finance mediation. Whether a claim is eligible will depend on its individual circumstances and the applicable FSCS rules.
Further information: www.fscs.org.uk
Once we have received sufficient information about your circumstances and requirements, we will carry out the relevant initial assessment and sourcing process and explain which application route applies to you.
Where Willows Finance provides the mortgage advice, we will continue through our advised mortgage process and explain any recommendations made.
Where your application is referred to another regulated intermediary, such as Evolution Money, we will explain that the receiving intermediary will take over the subsequent application and advisory process where applicable.
Please review all mortgage illustrations, ESIS documents, fee and commission disclosures, offer documents and other terms carefully before deciding whether to proceed. If anything is unclear, ask before committing to the mortgage.
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