marxsmann

Hi,

If i've just bought my 1st house - is there a timescale which determines how long before I can apply for a secured loan?


Thanks

Marc

MarkO

Assuming you've bought the house with a mortgage, it all depends on the lender's smallprint. Most lenders don't allow you to take a second charge (i.e., a secured loan other than the mortgage) on the property at all (at any time). If you're a first-time-buyer and have a high loan-to-value percentage (e.g., you've borrowed 90-95% of the value of the house) then you almost certainly won't be able to get a secured loan on the property.

Of course if you've bought with much more equity in the property (i.e., you put down a bigger deposite than 5-10%) then you'll probably be able to draw down some of the equity which would get you a better rate than a secured loan anyway (probably 4-5% versus 7-10% on a secured loan).

Best thing to do is to phone your lender. But my suspicion is that if you have to ask, you're probably out of luck.

Tiggs

there are various firms that will lend even with a 1st charge already on the house- and lend beyond 100% LTV......however, its also possible to put a staple through your *********, doesnt make it a good idea or painless though!

T

marxsmann

Right well thanks for the advice. All i need to really know is whether or not it is possible. Even if it will cost me?


Marc

fast bloke

Your first charge lender will probably not care. First charge means that they will get paid first from the proceeds if you default. If you do not have much equity you could expect to pay over 30% APR. 'Welcome finance' will love you as a client. Expect a heavy MIG fee and extortionate rate though... If you do have some equity on the house approach your first charge lender. You may get the loan at a decent rate.

As Tiggs says - It is possible to put a staple through your *********. I have founthe d that the vast majority of second charge lenders actually specify this in the smallprint