Steps To Take When Applying For Secured Loans
Whatever you’re thinking of financing with a secured loan, the UK’s specialist lending market is becoming more diverse all the time. From urgent one-off costs to planned purchases and investments, there are secured loans available to suit all requirements and budgets.
In this article, we’ll be taking a look at the seven steps every responsible borrower should take when applying for a secured loan.
1. Check your credit score
Some lenders issue secured loans without taking credit scores into account. If you can provide sufficient collateral to cover the cost of the loan, your credit history may be deemed irrelevant. However, many secured lenders continue to impose credit checks as a standard part of the application process. It’s therefore advisable to check your credit score before applying, in order to know exactly where you stand.
2. Consider your equity and assets
If you intend to secure a loan against your assets or equity, you’ll need to determine exactly how much they’re worth. This could involve organising a formal property valuation, which will need to be approved by the lender. Bear in mind that you’ll only be able to borrow against the value of your property you own outright - not the outstanding balance on your mortgage.
3. Work out how much you can afford
Use an online secured loan calculator to explore the various options and see how much you can afford to borrow. Experiment with different loan amounts, different repayment periods and so on, which will give you an idea of the overall borrowing costs and the affordability of the loan you need.
4. Compare the market
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