Secured Loans from Barclays

If you own your own home, secured loans are a great way for you to obtain a loan when in need of some extra cash. They usually allow you to borrow more money and for longer when compared to an unsecured loan. But it’s important to understand how they work.

How Secured Loans Work

The name ‘secured’ comes from the fact that to obtain the loan, Barclays will require something to be used as security in case you are unable to pay the loan back. The loan is ‘secured’ against your home, this makes the loan far less risky for Barclays allowing them to offer better rates, loan a larger amount and offer longer terms.

However, because a secured loan from Barclays uses your property as collateral, you need to understand that your home could be at risk if you are unable to keep up with the scheduled repayments.

You may also hear secured loans being called:

• Home equity
• Homeowner loans
• Second mortgages or second charge mortgages
• First charge mortgages (If there’s no existing mortgage)
• Debt consolidation loans (although some may not be secured)

Benefits of Barclays Secured Loans

Barclays allows you to:

• Borrow up to £250,000
• Repay over 1 to 25 years
• Credit rating will not be affected when getting a quote
• Able to make fixed monthly repayments

Restrictions on Barclays Secured Loans

• You must be a UK homeowner
• You must be over 18
• A household income of at least £8,000 is required
• You are required to have a permanent right to reside in the UK
• An arrangement fee may have to be paid