FREQUENTLY ASKED QUESTIONS

WHAT IS A SECURED LOAN?

A secured loan, or second charge, is a type of mortgage secured against your property. If you need to borrow a sizable sum of money, secured loans can be helpful. They are frequently used to finance home improvements, debt consolidation, or major purchases.

You may be more likely to be eligible for a secured loan than an unsecured loan even if your credit history is less than ideal. This is true even if you seem to be a riskier borrower because you are pledging an asset that guarantees the lender will always be able to recover their investment.

Lenders frequently view this as a reduced risk and may charge lower rates of interest when an asset is used as security, which is another advantage. Remember that if you default on your payments, you risk losing your house. Only take out a secured loan if you are confident in your ability to make repayments.

CAN I APPLY FOR A SECURED LOAN WITH POOR CREDIT?

Yes! We have lenders that will consider all circumstances from perfect payment history, all the way through to customers in Debt Management or IVA. We will even liaise with your IVA company on your behalf to get permission from your creditors.

HOW DO I KNOW IF I QUALIFY FOR A SECURED HOMEOWNER LOAN?

In the first instance, you must own a property or have some equity in one in order to be eligible for a secured homeowner loan. This is so that you can use your property as security for a secured loan, which is a loan secured against your property.

WHY HAVEN'T I HEARD OF YOUR LENDERS?

Secured loan lenders are typically specialists in the area, not linked to major banks and don’t have a high street presence. This is because FCA regulation requires secured loans to be completed on an advised basis, which protects you, the customer. For this reason lenders typically only deal with intermediaries who are qualified to give the relevant advice, like Trio Money.

WHAT CAN I USE A SECURED LOAN FOR?

Almost any legal purpose can be funded with a secured loan. A secured loan is often utilised to pay for bigger expenses because of the high amount you may be able to borrow with one.

Typically, debt consolidation, home improvements, weddings and major purchases are common reasons for a secured loan.

CAN I USE A SECURED LOAN TO CLEAR MY DEBTS?

Yes! This is a very common reason for secured borrowing. We could be able to find you a loan that reduces your outgoings with a lower interest rate too. Typically, lenders will pay the debts off on your behalf which means you will only need to speak to one lender.

IS A SECURED LOAN RIGHT FOR ME?

Secured loans are not always the right option for every customer. Your Trio Money advisor will take you through a fact find in order to make a recommendation.

Remember, the loan will be secured against your property, meaning the lender can take your property to recover their costs if you can’t repay what you owe.