Secured Loans from RBS

If you’re a customer who already has a mortgage with RBS you may be able to apply for an additional loan if in need of some extra cash. The second loan will be totally separate to your existing mortgage and will have its own interest rate and repayment terms.

You may hear this type of borrowing being referred to as a “second charge mortgage” and will allow you to borrow significantly more cash than with an unsecured loan. You will also be able to get longer repayment terms and will almost always get a better interest rate if your borrowing is secured.

Why Do Lenders Offer Better Rates with Secured Loans?

It’s a ‘secured’ loan because to take out the loan, you have to secure it against an asset you own, your home. As lenders have this extra security, they are far more willing to offer you better loan terms.

How Your Loan Amount is Determined

The amount you can borrow is determined by your LTV Ratio. It is calculated by looking at the market value of your home, the amount you wish to borrow and your current mortgage.

An example of how lenders would determine is: Your lender gives you an LTV ratio of 70%, if your home is worth £100,000 then you are allowed to borrow up to £70,000. If your current mortgage is £60,000, you’re then only allowed to borrow an additional £10,000.

Most lenders like RBS will not go above 80% and you’ll get far better rates if your LTV value is below 60%.

Benefits of Taking Out an RBS Secured Loan

• 90% of your home’s value can be borrowed
• Fixed monthly repayments
• Repay the loan over 3-35 years

RBS Secured Loan Restrictions

• Max borrowing age is 70
• Minimum loan of £10,000
• Must be an existing RBS Customer