Expert advice and support
Contractor secured loans
If you're a contractor exploring options for raising additional funds, you may have considered taking out a secured loan, also known as a second charge mortgage. Rather than pursuing a personal loan or remortgage, a secured loan allows you to use the equity in your home as collateral, providing an alternative route for financial support.
Secured loans can be particularly attractive if your current contractor mortgage rate is low and your lender is unable to assist with your additional borrowing requirements. Instead of being forced to remortgage your entire loan with a new lender, a secured loan allows you to retain your current mortgage and rate and simply borrow the extra needed from a third party.
Here at Cleerly, we can help you find the best secured loan for your needs and circumstances, whether you want to pay off debts, improve your home or invest in your business. Drop us a line on 02394 212912 or request a callback.
Second charge mortgages
How does a secured loan work?
A secured loan or second charge mortgage is a lending option that leverages your home's equity as a form of collateral. It’s often considered a preferable alternative to remortgaging which can be a lengthy and laborious process.
Second charge mortgages can be useful when you need to raise extra funds for various purposes, such as paying off debts, improving your home or making investments elsewhere. However, a secured loan is not without risk and it’s important to remember that it will be paid in addition to your current mortgage.
Eligibility criteria
How to get a secured loan
You can apply for a secured loan as long as you have at least 15% equity in your property. Similar to a standard or first charge mortgage, lenders will assess your application based on the following:
- your credit rating
- available equity in the property
- your income or general ability to make payments each month
- purpose for the borrowing
This is where Cleerly can help. As a specialist contractor mortgage broker, we know how to present your loan application to lenders in a way that increases its chances of approval.
What you'll need to apply
What documents do I need for a secured loan?
Documents required may vary depending on the lender, however you will most likely be expected to provide evidence of the following:
- Proof of identity: e.g. your passport, driving licence or other official ID document.
- Proof of address: e.g. a copy of a recent utility bill, bank statement or council tax bill that shows your name and current address.
- Proof of income: e.g. a copy of your contract, invoice, bank statement or payslip that shows your contract rate and income.
- Proof of property value: e.g. a recent valuation report or survey that shows the current market value of your property.
- Proof of mortgage balance: e.g. a copy of a recent mortgage statement or letter from your lender that shows the outstanding balance and terms of your first charge mortgage.
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