The secured loan process is generally slower than it is for an unsecured personal loan, and it often takes anywhere from 3 to 6 weeks to be approved for a secured loan. However, you can still apply for a secured loan within a couple of minutes, and loan approval times vary between different lenders.
This is because you’ll be using your house as security against the loan, which means the lender needs to verify the ownership situation and value the property. These steps are in addition to the normal personal loan application process, during which lenders need to verify your identity and check your credit history and financial situation.
Yes, you’re still eligible for a secured loan if you have bad credit, and you’re much more likely to be approved than you would be with an unsecured loan. When deciding whether to approve a loan application, lenders are mainly concerned with the level of risk associated with the loan. This refers to the likelihood that the applicant can pay off the loan on time.
Someone with bad credit will be considered a higher risk than someone with good credit, as their history suggests they may have struggled with paying off debts in a responsible and timely manner. With a secured loan, the lender can take ownership of the home equity you’ve used as security in the event you fail to repay your loan. As a result, the loan is considered less of a financial risk for the lender, meaning you’re more likely to get approved.
If you’re looking to get quicker access to funds, you could consider the following:
Secured loans may provide a good option if you’re struggling to get an unsecured loan. However, they come with the added risk of losing the asset you put up as collateral. They offer competitive rates and larger loan amounts as they’re secured against an asset such as a house. However, they may have a lengthy application process due to the additional steps of verifying the asset. Short term and unsecured loans may provide a faster solution to borrowing money, although often accompanied by higher interest rates.
Use our free secured loan calculator to find out how much you could borrow and check your eligibility with multiple UK lenders in minutes.
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