Lite Mortgages > Secured Loans

Secured Loans

A secured loan, also known as a second charge mortgage, is a loan secured against your property while your existing mortgage (first charge) remains in place.

Homeowners may choose a secured loan instead of remortgaging for various reasons, such as:

A secured loan can be a useful solution for those needing additional borrowing while keeping their current mortgage intact.

For older homeowners looking for alternative financing, see our options for Equity Release.

If you need a flexible financing solution using your property’s equity, we’ll guide you through secured loans and help you find the right funding option.

Mortgage Advice on Secured Loans

As someone exploring options for secured borrowing, you will probably have a lot of questions and concerns regarding the whole secured loan process.

By having an initial discussion with one of our team, we can answer your questions and guide you through the process to make sure you can move forward with confidence – contact us today.

Overjoyed young couple celebrating on sofa with a successful mortgage application.

Get in Touch with an Expert

Request a call back from a mortgage adviser at PLS Financial Services by entering your details below. One of our experts will be in touch with you soon.

    Who are PLS Financial Services?

    Lite Mortgages is a business introducer for PLS Financial Services Ltd, an authorised firm regulated by the Financial Conduct Authority (FCA). With over 15 years of experience as an independent broker, PLS offers a comprehensive range of mortgage services for all types of borrowers, along with free initial mortgage advice.

    Their dedicated mortgage brokers are available five days a week, providing friendly, honest guidance throughout the application process. With access to a wide range of mortgage products, they offer personalised financial advice to help you secure the most competitive mortgage deal, tailored to your individual needs and circumstances.

    Why use PLS Financial Services?

    A man wearing glasses sits on a chair, enjoying a cup of coffee while reading a newspaper.

    Whether you’re remortgaging, purchasing, or moving home, the process can feel overwhelming with countless tasks to manage. At PLS Financial Services, we take the stress out of securing your mortgage, so you can focus on settling into your new home.

    From assessing affordability to finding the best mortgage rates, our expert team will guide you every step of the way—making the process as smooth and hassle-free as possible.

    PLS Financial Services Ltd are whole-of-market independent mortgage advisers, giving them access to the full range of mortgage products available. This means they can find the best mortgage solutions tailored to every type of buyer, ensuring you get the most competitive deal for your needs.
    PLS Financial Services go beyond just securing your mortgage. They provide expert financial guidance, helping you analyse the costs associated with your move and make informed decisions that align with your long-term financial goals.
    Avoid the stress of navigating the mortgage market alone. We’re here to save you time, effort, and money by finding the best mortgage solution for you.

    Our relationship doesn’t end once your mortgage is secured. We’re here for the long run—whether you need help with future mortgages or financial advice on pensions, savings, or investments.

    Can I remortgage to repay a secured loan?

    Yes, it is possible to repay a secured loan in full by remortgaging it back into one mortgage. It is important to seek advice from a mortgage adviser to determine what would be suitable in each individual circumstance.

    How long does it take to get a secured loan?

    The time it takes to get a secured loan can vary depending on the lender and the specifics of the case. A more straightforward secured loan can take around 4-6 weeks to get approved from the date of application. The process involves several checks, including on the asset that will secure the loan, and a property valuation from your mortgage provider. However, this timeframe can be reduced to as little as 1 week in some circumstances.

    What is the typical interest rate on a secured loan?

    The time it takes to get a secured loan can vary depending on the lender and the specifics of the case. A more straightforward secured loan can take around 4-6 weeks to get approved from the date of application. The process involves several checks, including on the asset securing the loan and a property valuation from your mortgage provider. However, this timeframe can be reduced to as little as 1 week in some circumstances.

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

    Yes, it is possible to get a secured loan even if you have bad credit. However, your options may be limited. Each lender has their own criteria, and some specialise in lending to those with a less-than-perfect credit history. However, the interest rate and the fees involved will typically be substantially higher.

    What fees can be involved in a secured loan?

    A mortgage valuation fee covers the cost of assessing the value of the property you plan to buy. This mortgage valuation is carried out by a certified surveyor or an Automated Valuation Model (AVM) to confirm if the property qualifies as suitable collateral for your mortgage.

    The valuation cost varies by lender and property price, typically around £300, but it may be higher for high-value properties. Some lenders include this valuation at no extra cost.

    It’s important to note that this valuation is for the lender’s benefit only, not yours. If you need a more detailed assessment, consider:

    • Homebuyer’s Survey (RICS Level 2 Survey) – Ideal for conventional properties in reasonable condition, providing insights on repairs and maintenance.
    • Full Structural Survey (RICS Building Survey) – A comprehensive inspection for older, unusual, or heavily modified properties.

    For tailored mortgage advice, get in touch with us today.

    Once you’ve repaid your mortgage balance, your lender may charge an exit fee (also known as a discharge fee) to close your mortgage account. This fee typically ranges from £0 to £300.

    A deed release fee is charged by your current lender to transfer the property deeds to your new lender. This fee varies by lender and typically ranges from £0 to £300.

    A booking fee (also known as an application or reservation fee) is a charge some lenders require when you apply for a mortgage. It helps secure the loan during the application process.

    This fee typically ranges from £100 to £300 and is usually paid upfront. However, not all mortgage deals include a booking fee, so it’s worth checking before applying.

    A telegraphic transfer fee (also known as a CHAPS fee) is a charge for transferring mortgage funds to the seller’s solicitor on completion day. This ensures a same-day transfer between banks.

    The fee is usually £25 to £50 and is either added to your mortgage amount or deducted from the funds transferred.

    When you use a mortgage broker, you may need to pay a fee for their services, which include arranging the mortgage and providing advice. However, the specifics can vary. Some brokers charge a fixed fee and others charge a percentage of the loan amount.

    If you repay your mortgage during a fixed-rate tie-in period, you may have to pay an early repayment charge (ERC).

    This charge is typically a percentage of the outstanding mortgage balance and usually reduces each year until the fixed-rate period ends.

    The average solicitor fees for buying and selling a house in the UK vary based on transaction complexity, property value, and location.

    Legal costs typically range between £1,000 – £1,800, with additional expenses such as disbursements and local searches, which can add £250 – £350 when purchasing a property.

    These are estimates, and actual costs may vary. It’s best to obtain a detailed quote from your solicitor or conveyancer to fully understand the expenses involved.

    We can assist you with this! To learn more about the home-moving process, explore our blog post, which simplifies conveyancing for you.

    Frequently asked questions

    Yes, it’s possible to get a mortgage with irregular income, but lenders will assess your financial situation carefully. Here’s how different income types are considered:

    Employed with a Permanent Contract

    • Lenders verify your basic annual salary.
    • Overtime, commission, or bonuses are averaged (usually over 3 months).

    Zero-Hour Contracts / Irregular Hours

    • Most lenders require a minimum of 12 months’ employment history in the same role.
    • The income used will depend on the lender’s criteria.

    Self-Employed Applicants

    • A minimum of 12 months trading and at least one year’s accounts is required.
    • Lenders typically use an average of the last two years’ declared income (or the latest year if lower).
    • Income is assessed based on your SA302/tax calculation.

    Limited Company Directors & Shareholders

    • You’ll be considered self-employed if you own a large shareholding.
    • Lenders assess income based on salary + dividends or net profit, using tax records and certified company accounts.

    Need tailored advice? Speak to a mortgage adviser today to explore your options.

    Your credit score plays a crucial role in your ability to secure a mortgage. Mainstream lenders use it—along with other factors—to assess your creditworthiness and the risk involved in lending to you. However, each lender has its own in-house scoring system, which is where our expertise can help.

    Why Your Credit Score Matters

    • Eligibility – A higher credit score increases your chances of mortgage approval. If your score falls below a lender’s threshold, securing a mortgage may be challenging.
    • Interest Rates – A strong credit score can unlock lower interest rates, potentially saving you thousands over the life of your loan.
    • Loan Amount – Lenders may offer larger loan amounts to applicants with a good credit history.
    • Deposit Requirements – If your credit score is low, you may need to provide a larger deposit to offset the lender’s risk.
    • Mortgage Approval – Lenders review your credit history in detail. Missed payments, defaults, or bankruptcy could result in your application being declined.

    How to Improve Your Credit Score Before Applying

    • Pay bills on time – Late payments on credit cards, loans, or utility bills can negatively impact your score.
    • Manage credit utilisation – Keep your credit card balances low relative to your credit limit.
    • Reduce outstanding debts – Paying down debts improves your credit profile and affordability.
    • Avoid multiple credit applications – Applying for several credit products in a short time can lower your score.

    Can You Get a Mortgage with a Poor Credit Score?

    Yes! Even if your credit score isn’t perfect, specialist mortgage lenders may still be able to help. Some lenders do not use credit scoring but instead assess your application based on set lending criteria. This is why obtaining a copy of your credit report is crucial when applying for a mortgage.

    Need mortgage advice? Get in touch with a mortgage expert today!

    When choosing a mortgage, it’s important to understand the different types of interest rates available. Each option has its own advantages, depending on your financial situation and preferences.

    Fixed-Rate Mortgage

    • The interest rate stays the same for a set period (typically 2–10 years).
    • Monthly payments remain predictable and stable.
    • Ideal if you want protection from interest rate increases.

    Tracker Mortgage

    • The interest rate follows the Bank of England’s base rate.
    • If the base rate changes, your mortgage rate and payments will adjust accordingly.
    • Good for those comfortable with fluctuating payments and potential savings if rates drop.

    Standard Variable Rate (SVR) Mortgage

    • This is the lender’s default rate after your initial deal ends.
    • The lender can increase or decrease the rate at any time.
    • Usually higher than fixed or tracker rates, making it less predictable.

    Discounted Rate Mortgage

    • Offers a lower rate for a set period (typically 2–3 years).
    • The discount applies to the lender’s SVR, so payments can still fluctuate.
    • Can be a good short-term option, but payments may rise if the SVR increases.

    Capped Rate Mortgage

    • Works like a tracker mortgage, but with a maximum interest rate limit.
    • Protects you from significant rate increases while still allowing for savings if rates fall.
    • Provides some security with added flexibility.

    Offset Mortgage

    • Links your mortgage to your savings and current account.
    • The interest is calculated on your mortgage balance minus your linked accounts, reducing the total interest paid.
    • Can be useful if you have substantial savings and want to lower mortgage costs.

    Which Mortgage Interest Rate is Right for You?

    The best option depends on your financial goals, risk tolerance, and preference for stability or flexibility.

    Need expert advice? Speak to a mortgage adviser at PLS Financial Services today to find the best mortgage deal for your situation.

    An Agreement in Principle (AIP)—also known as a Decision in Principle (DIP) or Mortgage in Principle (MIP)—is a preliminary indication of how much a lender may be willing to lend you based on an initial financial assessment.

    Purpose: Helps you understand your borrowing potential before making an offer on a property.

    How to Get an AIP: You provide basic financial details (income, employment status, debts), and the lender performs a soft credit check (which does not impact your credit score).

    Important Note: An AIP is not a guarantee of a mortgage—it is simply an estimate based on preliminary checks. A full mortgage application is required to secure a formal mortgage offer.

    Formal Mortgage Offer

    A formal mortgage offer is the lender’s official confirmation that they will provide you with a mortgage. It includes the specific terms and conditions of the loan, such as:

    • Loan amount
    • Interest rate
    • Repayment schedule
    • Any special conditions

    To receive a mortgage offer, you must complete a full mortgage application. The lender will then conduct:

    • A thorough credit check
    • Verification of your income & financial documents
    • A property valuation

    Once the lender is satisfied, they will issue a formal mortgage offer, which moves you one step closer to purchasing your new home.

    Is a Mortgage Offer Legally Binding?

    No, a mortgage offer is not legally binding. While rare, lenders can withdraw an offer before completion if your financial circumstances change or if new risks arise.

    The house-buying process only becomes legally binding at the exchange of contracts stage.

    Exchange of Contracts:

    • This is when both the buyer and seller commit legally to the transaction.
    • If either party pulls out after this stage, they could lose their deposit or face legal action.
    • The completion date (when the property officially changes ownership) is set during this stage.

    Need more guidance? Our blog on The Conveyancing Process explains this in detail.

    Most lenders apply a loan-to-income (LTI) ratio, which typically allows borrowing up to 4.5 times your gross annual income. However, some lenders may offer higher LTI ratios in specific cases.

    Example Calculation:
    If your gross annual income is £40,000, your estimated maximum mortgage might be:
    £40,000 x 4.5 = £180,000

    Factors that impact your borrowing capacity:

    • Credit score – A higher score may increase loan eligibility
    • Existing debts – Lenders consider your current financial commitments
    • Monthly expenses – Higher expenses may reduce the amount you can borrow
    • Lender policies – Some lenders factor in bonuses, overtime, or self-employed income

    Since each lender has different criteria, speaking with a mortgage adviser can help you explore the best borrowing options for your situation.

    Buy-to-Let Mortgages

    For buy-to-let mortgages, lenders use a stress test that evaluates rental income alongside your personal income.

    Key requirements for buy-to-let lending:

    • Rental income – Must typically cover 125% to 145% of mortgage payments
    • Interest rate stress test – Ensures affordability even if interest rates rise

    If you’re considering a buy-to-let investment, a mortgage adviser can help you navigate lender requirements and find the best deal for your investment strategy.

    Next Steps

    Every lender assesses affordability differently, so it’s essential to get personalised advice. Contact us today for a tailored mortgage assessment and expert guidance.