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Frequently Asked Secured Loan Questions

What can I use my secured loan for?

Some of the most common reasons customers want to take out a loan would include financing home improvements, a new car or any other large one-off purchase. Loans can be arranged for other purposes so please feel free to discuss this with one of our advisors.

Will my secured loan application be accepted?

Different lenders have their own requirements that your application needs to fulfil. Dolphin will look to place your application with the lender whose criteria your circumstances meet and offers the most competitive rate for you. It also depends on which type of loan you are looking to apply for.

In general, Lenders will look at credit history, income and existing credit commitments to assess whether the new loan would be affordable. For secured borrowing, there will be other requirements to meet such as Loan-To-Value (comparing the total amount you are looking to borrow against the property, including any existing mortgage with how much the property is likely to be worth).

There are many factors which will affect your eligibility for a loan so it would be impossible to list them all to give you a definitive answer here. For more information please contact an advisor who will be happy to discuss this with you.

Will I need to pay any fees upfront?

Dolphin charges a fee however this is added to the loan amount so is repaid as part of your monthly payment. There are no costs to meet upfront.

What terms are available for me to repay the borrowing?

The terms available would depend on the type of loan you are looking to apply for. This is something which you would discuss with your advisor, as certain factors such as your age may determine the maximum term which you could use to repay the loan. We would always look to recommend the shortest possible term whilst ensuring the repayments are affordable to you on a monthly basis as the longer the term of the loan, the more interest is incurred.

I’m self employed. Am I still eligible?

Yes, we will need to evidence your income by way of an SA302 or we could possibly use business bank statements or a reference from your accountant. Your advisor will confirm what documentation is needed so this can be obtained as swiftly as possible.

I’m looking for a secured loan but I jointly own my property with my partner - do they need to apply for the loan with me?

Yes, if you jointly own the property then you will both need to apply. You will both then be liable for keeping up with repayments.

Do you do credit checks?

Yes, a credit search will need to be done as part of the application process as lenders require this information to decide whether to agree to the loan.

Will my application be confidential?

You can be assured that your information will be confidential and we will not share your details with any other company for marketing purposes.

How long can you have a secured loan for?

The benefit of a secured loan is that you can have it for as long as 30 years if you want to. This allows you to spread out the payments to make them more affordable.

How much can you borrow with a secured loan?

The amount you can borrow on a secured loan depends on how much equity you have in the property you want to secure the loan against.

What are the interest rates on a secured loan?

The interest rates can vary a lot on a secured loan as it can depend on; the lender, how much money you want to borrow, how long you want to borrow it for and your credit history. It can range anywhere from 3%-20%.

What happens if I miss a payment on a secured loan?

In most cases, you will be charged a fee for each payment you miss. You will end up paying more interest as you will owe more money for longer. If you continuously miss payments, the lender can report all of your missed payments to a credit reference agency which would affect your credit score and ability to apply for future loans. They could also:

  • Get a county court judgement against you to require you to pay.
  • They may start proceedings to repossess the security property in order to sell it to get their money back.

How long does it take to set up a secured loan?

Depending on the circumstances, it could take anywhere from a couple of days to a few weeks. We have a highly experienced and efficient team who will put it together as quickly as possible.

Can I get a secured loan if I have bad credit history?

It is normally possible to get a secured loan even if you have bad credit history, however, it will depend on the lender and your personal situation. This is because there is less risk for the lender as the loan is secured against a property, so, if the payments weren’t made, the lender can seize the property and take the money from the proceedings.

Can I pay back a secured loan early?

Yes - however, a lot of lenders are likely to apply an early repayment charge.

If you have any queries which are not covered in this section or would like to discuss anything further then please do not hesitate to contact us