Secured Loans from Santander

If you’re in need of some extra funds and already have a mortgage with Santander, you may be eligible to take out an additional loan. This loan will be entirely separate from your current mortgage.

This is often referred to as a “second charge mortgage” and is a way to borrow money often at a far cheaper rate than with an unsecured loan.

Why You’re Able to Get a Lower Rate with a Secured Loan

The reason you’re able to get a cheaper rate with a secured loan is because your home is used as security for Santander should you be unable to make your repayments. Since the bank has this type of security, they’re far more willing to offer you large loan amounts, a longer period to pay off and much better rates. Although your rate is determined by a variety of different factors.

Loan-to-Value Ratio

The greater your house price, and the amount of the current mortgage you’ve paid off, the greater the loan you’ll be able to take out with Santander. This is because you’ll have a better LTV ratio (Loan-to-value)

It calculated by taking your houses market price and the amount you wish to borrow. So, £30,000 borrowed with a £50,000 mortgage on a £100,000 house gives you an LTV of 80% or £80,000/£100,000

Benefits of Santander Secured Loans

• Borrow £5,000 or more
• Can borrow up to an LTV ratio of 85%
• Repay between 5-35 years
• Fixed monthly repayments
• No early repayment charges
• No product fees

Restrictions on Santander Secured Loans

• An existing Santander mortgage is required
• You cannot have ever been declared bankrupt
• You cannot be subject to an Individual Voluntary Arrangement