Secured Loans
for Debt Consolidation
Are you a homeowner looking to combine all your debts into one manageable payment? We search our extensive panel of lenders to find loan options tailored to your needs.
What are Secured Loans?
A secured loan is backed by something you own – like your home or a buy-to-let property. That’s why it’s also called a “homeowner loan” or “second charge mortgage”.
If you want to consolidate debt, make home improvements, or fund a big purchase, a secured homeowner loan could be a good option. Interest rates are typically lower than unsecured loans because the lender has added security.
Key Considerations
Borrow from £10,000 – £500,000
Terms between 3 and 30 years
Potentially lower interest rates and monthly payments
Loan secured against your house
Multiple loans turned into one
Extensive panel of lenders
End date to debts
More disposable income
Reasons to Get a Secured Loan for Debt Consolidation
Debt consolidation loans are usually taken out by people who have multiple debts and are looking to make them more manageable. Putting all debts in one place as a single monthly payment can decrease the stress of managing different charges, interest rates, terms and payment dates throughout the month. Using a secured loan for debt consolidation allows you to borrow against your home to pay off any existing debt you have.
Another appeal is that paying a single payment through debt consolidation could reduce your monthly outgoings and free up more disposable income. Having an end date to debts allows to start afresh with your finances, tidy up your credit file and take back control of your finances.
We offer terms between 3 and 30 years. Longer term typically means lower monthly repayments. You must also consider that longer repayment terms can increase the overall amount that you will have to pay back.
Secured homeowner loans typically have lower interest rates compared to unsecured personal loans or credit cards. This is because the lenders use home equity as security against the loan amount.
You can apply for a secured debt consolidation loan if you have a mortgage or if you own your house outright.
Scenarios That Can Lead to Having Multiple Debts
Unforeseen Life Events
Among many others, illness, job loss, or legal fees can contribute to a situation where you end up with multiple debts. When experiencing a financial setback, people often turn to credit cards or other forms of borrowing to make ends meet.
Interest Rates
High interest rates on credit cards and other types of borrowing can also contribute to multiple debts. If you are unable to pay off a debt with a high interest rate, or have too much credit utilisation, the charges can quickly build up and this can make it hard to pay off.
Cost of Living Crisis
Mortgage payments, utility bills, council taxes and other maintenance costs have all gone up. During trying times people often had to turn to credit cards or other forms of borrowing to pay for these increasing expenses.
Home Improvements
Using credit cards and loans for home improvements or other purchases that couldn’t be financed through a single loan or savings.
Benefits of Secured Loans for Debt Consolidation
Lower interest rates
Secured loans tend to have lower interest rates because the lender considers any payments towards finance on customers properties to be of high importance for the customer, therefore less likely to fall into arrears and less risky than an unsecured loan. Our qualified advisers look through a panel of lenders to provide you with options to fit your personal, financial goals.
Lower monthly repayments
We offer secured debt consolidation loans for terms between 3 and 30 years. The longer the term, the lower your monthly repayments can be.
You must remember to always check the final cost of the loan as it may increase if you take it over a longer period.
Low income
If you are working part time or retired you may have less money coming in than usual. In instances where you are on a low income you still may be able to apply for a homeowner debt consolidation loan. Your eligibility criteria regarding your monthly income are not as strict because your home is used as security against the loan and lowering monthly payments might help make the costs manageable.
Larger loans
Fluent Money offer secured debt consolidation loans between £10,000 and £500,000. Among other factors, the amount you can borrow will be dependent on how much equity you have within your home.
Important information:
With careful planning and responsible financial management, you could use a secured loan to start paying off your debt and achieve financial stability.
Fees may be payable depending on your choice of financial product. This will depend on your circumstances and will be discussed at the earliest opportunity.
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 debt secured on it. If you are thinking of consolidating existing borrowing, you should be aware that you may be extending the terms of the debt and increasing the total amount you repay.
Ready For Expert Secured Loan Advice?
Our professional advisers are here to look into your personal circumstances and find a solution tailored to your financial needs from a range of options that we have available.
The Application Steps
If you decide to take out a secured debt consolidation loan with Fluent Money you will be appointed your own adviser and case manager. They will find the right loan for you and your circumstances and explain the loan process in detail:
Online application process: All of the process takes place remotely, either online, by phone or via the app. You do not have to leave the convenience of your home to study the documents or communicate your needs to us.
Assessing your debt: It is important to assess your current debt situation and to note down all your debts, including the outstanding balances, interest rates, and monthly payments.
Your appointed adviser will help you determine the total amount you need: They will work with you to add up the total amount of your debts, including any outstanding balances, penalties, and fees. This will give you an idea of how much money you need to consolidate your debt.
We will then do a search to find you a suitable lender: Fluent Money work with an extensive range of lenders which include high street, specialist, and niche lenders. This means that they can find a lender suitable to complex or specific circumstances and get you a competitive rate.
The offer: If you are happy with the lender, the next stage is for the provider to issue an offer. This includes full terms and conditions for you to carefully read through, approve and sign.
Completion: The lender will then pay off your debts. This will leave you with only one monthly payment to make, which can make it easier to manage your finances.
Debt Consolidation with Bad Credit
If you have bad credit, then you could still apply for a secured debt consolidation loan. The risk on a such loan is typically considered less to lenders because you are borrowing against your home. This means that lenders are not necessarily as strict on your credit score eligibility. This also means that you must have a mortgage with equity or own your house outright if you are looking to apply.
Bad credit, CCJs and mortgage arrears: Sometimes trying to manage multiple debts can result in negatively affecting your credit score and this can lead to:
- Default or late payments: If you default or make late payments on your mortgage, credit card, or other loans, it can negatively impact your credit score.
- High levels of debt: If you have high levels of debt, it can negatively impact your credit score, particularly if you are using a high percentage of your available credit.
- County Court Judgments (CCJs): If you have unpaid debts that are taken to court, and a CCJ is issued against you, this can have a negative impact on your credit score.
If you have found yourself in any of the above scenarios you can still be eligible for a homeowner loan. Speak to our advisers who will be able to determine your eligibility and do a “soft” credit check which won’t affect your credit rating, before you actually apply for the loan.
FAQ
Fluent Money only offers debt consolidation loans taken out against your home or buy-to-let property. The FAQ below answers questions to do with secured loans. We will, however, always try to signpost you to a better solution if we think that a secured loan is not in your best interest.
The goal of a debt consolidation loan is to put multiple loans into one payment, which is typically lower. Usually to pay off multiple credit cards, loans, catalogues, overdrafts, car purchase and the likes, that can have high or revolving interest rates and no end in sight.
You take out a loan and pay off all of the above.
You organize the various terms, interest rates and outgoings into one monthly payment. The end goal is for you to regain control of your finances by lowering your monthly expenditures, having an end date to your debt and, hopefully, closing all store purchase credit cards after your balance is at zero.
At Fluent Money, we would take details of your existing credit and the items you want to pay off. Upon successful application, all of these items will be paid off by the lender. A lot of the time, especially if you are paying off credit cards, it makes the time needed to repay the loan shorter.
The main reason to get them is when things are becoming unmanageable. At any time people should be looking at managing their finance more efficiently. Even to just see if there is a smarter way to repay debts through either lower interest or monthly payments. You might have credit cards that you are managing perfectly well, but if they are all at 24% and we can get them down to 7% and pay it off in 10 years as opposed to 30, it only makes sense to enquire.
There are many scenarios where having a debt consolidation loan would be a good idea. Just a few examples could be zero interest on credit cards coming to an end, bringing your payments down, tidying up credit score with lower credit utilisation, putting multiple debts in one place.
If any of these are achievable with a debt consolidation loan then you should at least consider it.
Pros: One payment in one place, potentially lower monthly cost. Potentially lower interest rates. End dates to the debt vs revolving credit cards. Possibility to pay off debt quicker. Also, fixed interest rates are available for your peace of mind.
Cons: The loan amount is secured against your home. The need for careful financial management does not stop after receiving the debt consolidation loan. Making sure all unnecessary accounts are closed, thorough calculation of your income vs outgoings and keeping up with repayments is critical for debt consolidation to work. While your outgoings may reduce, the total amount to repay could be higher over longer term loans. Paying off loans early may incur early repayment charges.
Short-term: Taking out any type of credit item can mean that your credit score will take a dip until you’ve maintained payments.
Long-term: Not having multiple items of credit, especially revolving credit like credit cards, can improve your credit score.
Alongside Secured Loans, you can consolidate credit using Lifetime Mortgage, Mortgages or Bridging loans. All of these are offered here at Fluent Money and we will propose an alternative option if we think it’s in your best financial interest.
All of our services require the applicant to either own their home outright or have a mortgage, but there are also unsecured (personal) debt consolidation options available on the market if an individual has high income but no home equity.
Fluent Money is a secured debt consolidation loans broker. We are a regulated UK business and have access to an extensive panel of lenders that include specialist, niche and high street providers. Applying for a debt consolidation loan with us, provided you have a mortgage, allows for a variety of options to fit your financial needs.
Fill out our quote form and one of our friendly staff will call you to take some basic information. An adviser will then be assigned to you to learn about your financial circumstances and provide you with suitable options.
No. Fluent Money only offers secured debt consolidation loans which can be even easier, since property is used as security. It may not be always possible to get a loan, but having that security gives you more options and potential positive outcomes.
You also need to be using less than a 100% of the equity in your property.
Finally there is an affordability requirement which is different from one lender to another. It includes an existing income and expenditure assessment.
Secured loans are typically more expensive than mortgages but are more often cheaper than credit cards. It comes down to personal circumstances. A person with higher income, excellent credit and looking to borrow less than £25,000 over 7 years or less, may get a better rate on a personal loan. Someone looking for more than £25,000 over longer than 7 years or with lower income, or even some missed payment etc, may get a better rate or more options with a secured loan.
Many of our customers use secured loans to repay expensive credit cards, to reduce interest and achieve the goal of having a clear end date to work towards, to clear their debts. It may not be the right option to pay off an interest free or very low interest credit card. Your adviser can discuss these options with you to give you confidence you are making the right decision before you proceed. We can even supply illustrations to help.
Most lenders will ask for account numbers and will pay the account directly to insure that your balance is brought to zero. It is worth noting that lenders are unable to close your accounts for you.
Sometimes it makes sense to take out a second secured loan. It’s a very specific product type. Technically, you can have a second charge and a third charge debt consolidation loan. Usually we try to combine everything into one, depending if it’s in your best interest.
An example would be you having a secured loan with a low interest rate and a lot of time left on it. Sometime the math suggests that taking out a second secured loan (or a “third charge”, to make things even more confusing) will be cheaper in the long-run.
Using a secured loan for debt consolidation would typically be a good option to consider when dealing with large amounts of debt. Your property allows access to a wider range of loan options including loans up to £500,000. This means secured loans through Fluent Money can help you consolidate multiple items of credit.
Fluent Money does not offer unsecured loan options.
But yes, by getting what is known as “unsecured personal loan”. Typically you will not be able to get sums above £25k without putting up your house as collateral and the interest rates can be higher since there’s more risk to the lenders.
Why Our Customers Recommend Fluent Money®
We’re one of the UK’s favourite finance brokers. Don’t believe us? See what our customers have to say:
The Team were fantastic and very thorough
I had fantastic experience with Fluent Money. All of their employees were extremely helpful and efficient from the start throughout the whole process. One can’t compare it to a standard high street bank. I would highly recommend this company as they really care and make sure they choose the lender that suites their customer’s circumstances.
Amazing Service
I approached fluent for some help for a consolidation loan. A few worries before calling but they were all soon put to rest. Matt initially helped me find the right deal and then Abby went on to seal the deal. Thanks to their knowledge and advice i am now a lot more comfortable and i cant thank them enough. Very quick turn around. I highly recommend Fluent. If you have money concerns it really is good to talk. Thank you.
I would 100% recommend them
Amazingly helpful they took care of everything taking out the stress of having to deal with it myself I would 100% recommend them first with James who helped me look for the best loan then Simon who took care of all the paperwork thanks guys
Excellent
Excellent! I have used this company for a second charge loan for consolidation of another loan and additional funds for a house renovation. George was brilliant, knowledgeable, proactive and efficient. Nothing was too much trouble. I would highly recommend this company!
Securing my loan
Very clear information and great service
