Secured Loans from Bank of Scotland

If you own your own home and are already an existing customer with Bank of Scotland, you may be eligible to take out an additional loan if you’re in need of some extra cash. This additional loan will be taken out on top of your existing mortgage and will be completely separate from any existing debt leveraged against your home. You may hear this type of loan being called a “second charge mortgage”.

What is a Secured Loan?

With a secured loan you will normally be able to borrow larger amounts of cash and for a longer term than if you were to take out an unsecured loan. The reason you’re able to get this better deal is because the loan is secured against your home, making the loan far more secure for the lender. This is what allows them to offer you much better rates on your loan.

As the loan is secured against your property, you need to be aware that if you fail to make repayments your home could be at risk.

The Loan-To-Value Ratio

Bank of Scotland, and indeed any secured loan lender, will decide how much they’re willing to lend you based off of a Loan-To-Value (LTV) ratio. It’s essentially the ratio between how much you wish to borrow and the total price of your property.

So for example, if you wanted to borrow £15,000 on top of a £60,000 mortgage, secured against a £100,000 house. Your LTV would be £75,000/£100,000 or 75%.

For the best deals, most lenders want under 60% but most will offer up to 80%.

Benefits of Bank of Scotland Secured Loans

• Can borrow up to LTV value of 85%
• There are no arrangement fees
• Able to make fixed monthly repayments

Restrictions on Bank of Scotland Secured Loans

• A minimum loan of £10,000
• Must have had a mortgage with Bank of Scotland for 6 months