Imagine Mortgages

If you need to release some of the equity in your home to pay for an extension, holiday or even to repay other debts a secured loan may be the perfect answer.

Most people use a secured loan when they have a high redemption penalty on their current mortgage meaning that it would be too expensive to remortgage. A secured loan works in much the same way as a capital and interest mortgage where the amount you pay reduces each month.

Secured loans range from £3,000 to £250,000. The maximum loan to value the lender will offer is 125% of the value of the property. However if you have bad credit the lender will only go to 90% of the loan to value in most cases. The loan to value is a calculation of the value of the property less the outstanding balance. The secured loan is then added to the mortgage outstanding balance. This is then calculated as a percentage and this is the loan to value. Secured loans terms range from 5 years to 30 years. The interest rate is often a little higher than a standard mortgage.