Secured lending growth continues

There is an ever growing range of secured loan products geared towards those prime customers. The current market leader in terms of rates is Shawbrook Bank who have recently reduced their  Platinum rate, Nemo has also dropped its headline rates to the lowest figure since pre-credit crunch days to sit just behind Shawbrook at 7.008 per cent. For the first time in many years there is healthy competition in 'prime' secured loans and everyone is benefitting.

Due to the maintenance of the base rate at just 0.5 per cent many people have enjoyed a low variable rate on their mortgage for many months now. However in many cases if they apply for  additional funds to improve their property or consolidate expensive unsecured debt they may lose this privilege. Our panel of prime secured loan providers are now offering their clients the option to stay on their low base rate and borrow extra funds through a second charge at a very competitive rate.

Something else the likes of Shawbrook’s Platinum scheme brings to the table - flexibility, something not often displayed by mortgage lenders with regard to credit history. Clients with even the most minor blip are declined by the high street, even if their debts are settled. However, Shawbrook’s approach on its lowest rates is different.

They will accept customers with minor adverse. So if a customer has a missed payment on items of unsecured credit as long as it was brought back up to date quickly then this is fine. They will also ignore CCJs and defaults over three years old unless over  £5,000 – in which case they will ask for the background. 

These plans are not just for small loans. These prime lenders will lend anything from £25,000 to £125,000 at 6.9 per cent. This means that customers can now genuinely choose between a  remortgage or a secured loan.