Secured Loans
Quick decision secured loans for any purpose.
Whether you want to raise funds to make some home improvements or for anything else, we can offer a secured loan to help meet your financial needs. Whatever your circumstances - self employed, retired, CCJs, bad credit, we are specialists at what we do and we can help you gain a secured loan from £5,000 to £50,000 with flexible repayments over 5 to 30 years.
First Choice Finance was established over 20 years ago. Our state of the art technology can save you time and stress by searching the market for you to find the best deal. All you need to do to get started is to fill in a few basic details and we can get started on your behalf.
We offer a no obligation service and you can cancel the application at any stage, if you wish, at no cost to yourself.
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5 More Tips on Comparing Secured Loans
Making financing decisions can be scarey when it comes to taking out secured loans. Therefore, the better educated you are – the more you can protect yourself and be sure that you are taking a decision that will not be regretted. Here are 5 more tips on what to look for when comparing secured loans:
Watch that ‘typical APR’. It is quite likely that you won’t be offered the same rate as the ‘typical APR’. This will depend on your credit history and whether the institution feels that you can pay back the capital of the secured loan. It’s law that just 67% of those that qualify for a loan has to be offered the headline rate or ‘typical APR’ – but this means that a third of all applicants will be offered a loan at a different rate – and this is usually higher.
Compare the Total Amount Repayable. This will give you the total figure that you will need to repay and it will also include all the repayments, the fees and any extra hidden charges.
Selling or buying a property requires certain legal aspects to be handled correctly. Employing a qualified conveyancing solicitor is vital to ensure that these legal issues are covered.
Go comparison shopping. This will ensure that you get the best deal. Find out all that you can about the products on the market and even go so far as setting up a spreadsheet with all the factors involved. This way you are well ahead of the game and know what’s what in the world of secured loans.
Try your local bank. It might be that your local bank offers you a good deal. After all they have spent years trying to build a good relationship with you so that you will buy more of their financial services. The might better any rates that you find elsewhere.
You don’t have to purchase payment protection insurance. Looking for the cheapest car loans visit compare the market today! Sure, these financial institutions will try to encourage you to buy this – but you don’t have to. It can often add as much as half the interest rate again onto the total cost of your loan. You might be better off if you purchase income protection insurance.
5 Tips on Comparing Secured Loans
The biggest tip that any financial adviser will give you is to do your homework before agreeing to any offers on secured loans. Research will involve comparing the terms and conditions in addition to the interest rates. However, there are a few other pointers that you might want to keep in mind too.
Research, research and more research. The better you educate yourself, the more you will understand about the products on the secured loans market. There is a lot to know and your final decision could cost you hundreds of pounds so be sure to find out all t hat you can.
Secured loans are cheaper. They are definitely cheaper, but they are usually secured against your home. This might be something that you prefer not to do. However, unsecured loans are usually weighed down with very high interest rates that will make each money payment a lot bigger.
Ask for the lowest possible. The less you borrow – the less you will have to pay back in interest. The less time it will take to pay back, the less interest you will pay back. As you compare the secured loans on the market – take your time to compare the total cost of the loan to the monthly payments. Select the loan that best suits your personal circumstances.
Go for a loan with a fixed interest rate. This will mean that you know precisely what your payment is each month. If you have a variable interest rate, you’ll need to be certain that you can afford any rises in interest rates.
Watch for hidden fees. Many advisers will tell you to select a loan with the lowest APR, however you’ll need to read the small print to see if there are any fees at the end of the loan.
Secured Loans Pitfalls
Getting a secured loan can be a valuable tool in gaining long-term financial security. Making the decision to get a secured loan can be one of the best economic choices you will make, but it’s not a step to be taken lightly.
Experts agree that it’s important to do your research first and reading about loans at moneysupermarket can help you decide whether or not a secured loan is your most financially viable option.
What are Secured Loans?
With a secured loan, the borrower puts up the required collateral for the loan in the form of an asset; this can be a home or land parcel, a car, a boat or some other form of personal property. If the person borrowing defaults on the loan, the lender may take possession of the asset and sell it to recoup the amount of the loan.
Once you decide to take out a secured loan, there are some important things to consider before you sign a loan agreement:
- Make sure you’re signing with a reputable loan company. Do your homework; if necessary, use the internet, the Better Business Bureau and the Office of Fair Trading to find out as much as you can about the lender.
- Try to improve your credit score. You can still get a secured loan with less-than-perfect credit, but you may have to pay a higher down payment or interest rate. If you’ve got the time, try to pay down some credit cards or other monthly loan payments first; this will improve your chances of getting the loan at a good interest rate.
- Make written notes of everything you discuss with your lender and make sure you identify the representatives you’re speaking to by name in case any questions come up later. Don’t agree to anything verbally; get everything in writing.
- Read and understand everything thoroughly before you sign it. If you need to, hire a lawyer to go over the details with you.
- Be aware of extra fees. Secured loans often include broker, administration and transaction fees, as well as fees charged by any third party involved. Although some of these fees are negotiable, many are based on a fixed rate. Likewise, some are payable at the time the loan is taken out, while others can be paid on the closing date.
The good news is that these fees can sometimes be included as part of the loan. Lenders are required to give you a full estimate up front of all the fees involved, so find out exactly what you’re paying before you agree to the loan.
Things to Avoid:
- Avoid balloon payments. These occur when you agree to pay most of the debt towards the closing months of the loan agreement. Compound interest is then imposed on these already-inflated final payments, so you’ll end up paying more.
- Avoid inflated fees and overly high interest charges. Find out what the going rate is for most service charges and be aware of current interest rates. If these seem outrageously inflated in comparison with other lenders, find someone else.
- Avoid penalties for prepayment. Some lenders charge a fee if you pay the loan off early; this fee is meant to cover the interest payments they’ll lose. Whenever possible, avoid loans with prepayment penalties.
- Avoid long-term loans. These can be an interest trap. If you can afford it, a shorter-term loan will save you hundreds or thousands of dollars in interest fees.
When handled correctly in a financially responsible manner, secured loans can be a money-wise way to manage your finances and help you attain your ultimate financial goals.
"OUR TYPICAL, VARIABLE RATE FOR SECURED LOANS IS 16.9% APR. RATES RANGE FROM 9.9% to 29.9% APR. 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."
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