Applying for a 125 Secured Loan is not really any different to applying for any other type of loan. The mortgage lender may have stricter criteria because they are taking a greater risk by lending you 25% more than the value of your home. But some lenders are prepared to do that, as long as you satisfy their requirements.
So how do you go about applying?
First of all, do some research online to draw up a list of lenders who offer 125 Secured Loans. You might want to draw up a table to compare interest rates and terms, then make a shortlist of lenders to approach.
Go to each lender’s website and take a look at what is involved in the application process. Some lenders will allow you to apply online, whereas others will want you to print off an application form, fill it in by hand and send it in.
In most cases, once you’ve completed the application form, the next step will be a telephone interview with a consultant from the loan company. In some cases, you may be asked to visit a branch and have a face-to-face interview, but that is unusual.
Once you’ve been through the interview process, the lender will probably do one of three things:
- offer you a 125 Secured Loan under the same deal for which you originally applied,
- offer you an alternative deal, for maybe a lower amount or at a higher interest rate
- turn your application down.
As long as you haven’t been turned down, the next step will be to go through the timescales and agree the processes for getting the loan completed.
Note that you may find it more difficult to find a lender willing to grant you a 125% Secured Loan if you are self-employed, or if you have any history of poor credit. For example, if you have defaulted on a previous loan or if you are in arrears on your current mortgage it is unlikely your application will be successful.
In terms of the amount you can borrow on a 125 secured loan, it will depend on the value of your property and on various other factors such as your current monthly income.
The time period of the loan can be anything from three years to thirty years.
There may also be restrictions regarding how you can use the money you borrow, so you want to make sure this is clear during the application process.
If all goes according to plan and you are seen by the mortgage lender as being a safe risk, you should be granted your 125 secured loan. Good luck!