Secured Loan FAQ
How does a secured loan work?
Secured loans work when an assest, such as property or a car, acts as security for the loan. If the loan is not repaid, you could lose that asset to the lender.
Secured loans are secured against a home, using the equity you’ve built up, or a car, as security. This may enable you to get the finances you may need.
A secured loan provides a lender with greater security if a borrower cannot meet the monthly repayments. That’s due to the asset acting as security on the loan.
- Secured loans are usually available to fund large-scale borrowing. This will include mortage lending to purchase property
- The amount you can borrow, the length of the loan and the interest rate will depend on your personal circumstances
- An asset to act as security can be any item of value, such as a house, car, jewellery or business stock. It may be what the loan is being used to fund
- Failure to repay the loan may result in losing that asset to the lender
A secured loan can be used for various financing reasons, though they may be most commonly known for mortgages or new cars.
Due to secured lending involving larger amounts, you may consider using it to consolidate your debts into one single affordable monthly payment. (Any consolidation of debts, Evolution pays direct to lender)
This is an important decision, so, ensure you do your research before seeking a loan.
Representative 22.93% APRC variable.
For a typical loan of £26,600 over 180 months with a variable interest rate of 19.56% per annum, your monthly repayments would be £484.00. This includes a Product Fee of £2,660.00 (10% of the loan amount) and a Lending Fee* of £763.00, bringing the total repayable amount to £87,030.00. Annual Interest Rates range between 11.7% to 46.5% (variable). Maximum 50.00% APRC. *Lending Fee varies by country: England & Wales £763, Scotland £1,051, Northern Ireland: £1,736.
Think carefully before securing debts against your home may be repossessed if you do not keep up repayments on your mortgage or any other loan secured against it. If you are thinking of consolidating existing borrowing, you should be aware that you may be extending the terms of the debt and increasing the total amount you repay.
