Secured Loan or Remortgage? Some thoughts from Caboodle Finance, Birmingham…

Thursday, December 17th, 2015

For many years, homeowners in the UK have struggled to find the best solution when looking to raise finance against their own home or perhaps an investment property they own.  Without access to all the facts, many just live in hope that they have actually made the correct choice be it a remortgage or perhaps a secured loan instead.

Fortunately brokers like Caboodle Finance of Sutton Coldfield in Birmingham have been advising clients in this regard for a number of years, taking away the need for that client to crunch their own numbers so that any decision is based on solid financial data and of course professional advice.

Making the decision, secured loan or remortgage?

As the secured loan market has evolved over the last few years the products and interest rates available have edged closer and closer to those available on a remortgage, making the decision on which path to take even more complicated.

The factors to be considered when making a decision are not just down to the interest rates on offer as consideration also has to be given to the term of the borrowing, any fees that may be involved and any future “tie-ins” or “early repayment penalties” that may be payable if the loan or mortgage is paid off early.

When assessing the individual circumstances and requirements of each customer, Caboodle Finance gives balanced consideration to both sets of these products in order to advise on the best course of action on a case by case basis.

In fact, whether secured loan or remortgage, the process can at first sight appear to be fairly complex, usually because of one or more influencing factors which include but are not limited to:

  1. Employment status and income
  2. Age
  3. Credit history
  4. Any short to medium term plans for the property being used as the security
  5. Current arrangements and/or any early repayment fees on any existing mortgage
  6. The term on any new borrowing compared to the remaining term on an existing mortgage
  7. How quickly the finance is required
  8. The purpose of the finance they are looking for

So finally, if you are looking for some great advice regarding secured loans or a remortgage, please speak to a professional broker.

We’re Here to help

At Caboodle Finance of Sutton Coldfield, Birmingham we are always ready and willing to help our clients review and assess their individual circumstances and requirements in order to deliver the best possible outcome for them based on those parameters.  Just click HERE to contact us by email or call us today on 0121 308 9114 and we will be delighted to help you.

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THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. CONSOLIDATING DEBTS MAY INCREASE THE TERM AND TOTAL AMOUNT PAYABLE.

Your initial consultation is free and you are under no obligation to proceed with a mortgage we recommend. There will be a fee for mortgage advice. The exact fee will depend on your circumstances and may be reduced depending on the loan amount and any commission we receive from the lender. It is estimated that the fee will be £595, but it may range from £495 to 1% of the amount you borrow. The fee is only payable on completion and can normally be added to the mortgage. This will be discussed and agreed with you before you make an application. Please ask for a personalised illustration.

Secured loan rates from 3.95% APRC, although we have plans available up to 29.9% APRC which allow us to assist customers with the most severe credit problems. The overall cost for comparison is 7.65% APRC. For secured loans a broker fee up to 10% of the loan amount borrowed may be payable on successful completion. A lender fee may also apply. The actual APRC available will depend on your circumstances. All loans are subject to status. Please ask for a personalised illustration.

The guidance and/or advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK.

Caboodle Financial Services Ltd, registered in England at SQ2 House, 240b Lichfield Road, Four Oaks, Sutton Coldfield, West Midlands B74 2UD (number 08044670).
Caboodle Financial Services Ltd is an appointed representative of PRIMIS Mortgage Network (PRIMIS), a trading name of Advance Mortgage Funding Ltd which is authorised and regulated by the Financial Conduct Authority. PRIMIS is only responsible for the service and quality of advice provided to you in relation to mortgages, protection insurance and general insurance products. Any other product or service offered by Caboodle Financial Services Ltd may not be the responsibility of PRIMIS and may also not be subject to regulation by the Financial Conduct Authority. The Financial Conduct Authority does not regulate some forms of Buy to Let.

© 2019 Caboodle Financial Services Ltd