Secured Loans from Lloyds

If you’re in need of some extra cash and are currently a Lloyds customer, you may be eligible to apply for additional borrowing. You may hear this loan being called a “second charge mortgage” which is because the loan is taken out on top of your existing mortgage, with completely separate rates and payments.

What is a Lloyds Secured Loan?

The loan is secured against assets you own, which is usually your home. You’re usually able to get a far lower interest rate than if you went with a personal loan, and this is because the lender has far more security in this agreement. This also means that you’re usually able to borrow a lot more money too, with longer payment terms. Payments are usually made on a monthly basis, and the amount you pay each month will vary unless it’s fixed.

The LTV Value

Loan-To-Value is what lenders use to determine how much money you can borrow on top of your existing mortgage. It’s calculated by looking at the market value of your house, your current mortgage and the amount you wish to borrow.

For example, your house is worth £100,000, you wish to borrow £20,000 and you have a £40,000 mortgage. Your LTV would be 60% or £60,000/£100,000.

Lenders like Lloyds tend to give the best deals when your LTV ratio is below 60%, but are usually willing to go up to 80%.

Things to Consider with a Lloyds Secured Loans

• Able to borrow up to 85% LTV – 75% if you’re on an interest-only mortgage.
• £10,000 is the minimum borrow amount
• You must be an existing Lloyds customer with a mortgage for more than 6 months.
• Before you apply, all payments must be up to date.