Secured Loans

In certain circumstances it may not be right to remortgage to raise funds as heavy redemption penalties are involved. A sensible option in such circumstances is to take a secured loan instead. The rates are competitive, and secured loans now only carry a maximum redemption penalty of one month’s interest. The changes to the market brought about by the recent credit crisis have reduced the maximum percentage that can be taken via a secured loan, but there is still a niche for them.

The Financial Services Authority does not regulate secured loans.

Bridging Loans

Occasionally a sale and purchase cannot be completed simultaneously. This is when a loan is required to ‘bridge’ the gap. Such loans are never a cheap option as the interest rate is charged on a monthly basis, but if they help you to achieve a dream purchase it could be a small price to pay.