DEBT CONSOLIDATION

A secured loan can often provide a life-changing solution for people who are looking to reduce their monthly payments, and pay off their debts sooner. Often traditional highstreet lenders are quick to refuse to lend when there is a lot of debt in the background, although that money could be used to solve the situation - secured loan/2nd charge lenders understand this, and offer a common-sense, bespoke approach for you.

Difference in monthly payments based on £50,000

A secured loan of £53,990 (including a £2,995 advice fee and a £995 lender fee added to the loan) payable over 25 years, initially on a fixed rate of 5.99% for 5 years, and then on a variable rate of 7.5% for the remaining 20 years, would require 60 monthly payments of £386.99, followed by 240 monthly payments of £429.67. The total amount payable would be £122,518, made up of the loan amount plus interest (£68,528) and fees (£0 paid upfront; all fees included in the loan). The overall cost for comparison is 6.8% APRC representative.

  • Based on average figures, a typical client could save £1153 per month when consolidating £50,000 of credit card debt into a secured loan.

  • Due to the lower rates of a secured loan, this means you can bring the payment down drastically to give yourself more breathing room, or you can reduce the term to allow you to pay the debt off even sooner. We help you to find the balance that’s right for you.

  • Highstreet lenders can decline lending to people with a lot of unsecured debt, often declining them for reasons such as affordability or credit score.

  • Many of our lenders have no minimum credit score.

  • Many of our lenders will clear the debts for you, this way they know that they can lend the additional funds, as you will be clearing the debts and saving money each month - a common-sense approach most traditional lenders don’t do!

  • Sometimes a remortgage may be an option, however it’s important to consider any early repayment charges or changes to the overall rate, as a secured loan will avoid these costs, and you will only have the higher rate on the additional amount borrowed whereas a remortgage could move your entire mortgage balance to a higher rate.