Secured Loans

A secured personal loan is one in which some of your property (such as your house or vehicle) is held as security by the lender for the amount you have borrowed. This type of loan usually offers lower interest rates than unsecured ones, and are normally the cheapest way to borrow. However, if you default on the loan, then you will be at risk of losing your property.

If you have kept up to date on your mortgage repayments since you took out your original mortgage your lender will normally be very keen to lend you more money. You should be able to get the increase on the same terms as your existing mortgage.

If your mortgage lender does not agree to that and you are free of the early redemption penalty period, you may want to consider looking for a new lender. There are plenty of lenders around who will offer you a new mortgage for the whole of your existing outstanding mortgage plus the new money you want to borrow.

However, before you switch from one lender to another for a better rate, make sure that you check how much set-up fees, legal costs and valuation fees may cost you. Some lenders will negotiate on these in order to secure your business.