Shawbrook Bank Secured Loans

What type of secured loans does Shawbrook Bank offer?

Shawbrook Bank offers second charge mortgages to homeowners in the UK with existing mortgages on their properties. These secured loans are offered on either tracker, variable or fixed interest rate deals and are repayable over a period of up to 25 years, depending on your requirements, your loan amount and your personal financial circumstances. The loans are secured against your property and you could stand to lose your home if you don’t keep up with the repayments.

What can I spend my Shawbrook Bank secured loan on?

It is up to you what you spend the money on. Some of the most common reasons to seek out a secured loan include helping with large expenses or purchases, such a school tuition fees or home refurbishment, but the cash can also be used for business purposes or to buy a buy-to-let property.

However, it is recommended that you consider your options before making a long-term financial commitment like a secured loan. Other options such as unsecured loans, credit cards, savings or overdrafts could give you access to cheaper borrowing with less risk.

Can I repay my Shawbrook Bank secured loan early or make regular overpayments?

You are able to repay early or overpay on your secured loan, but there are sometimes early repayment charges applied, so check this before committing.

Will I be able to borrow more through a Shawbrook Bank secured loan than with an unsecured bank loan?

This will, again, depend on your personal financial circumstances, affordability and your credit record. Lenders sometimes offer more when a loan is secured against a property as lending poses less of risk to them. Some lenders will offer secured loans with lower interest rates to those with poor credit ratings for the same reason. However, bear in mind that less risk to the lender usually means more risk to you, as the borrower, as you can lose your home if you default.

What should I do if I can’t meet the repayments for my Shawbrook Bank secured loan?

If you are suffering financial difficulties, always contact your lender right away and be honest. They will usually be able to work out a new repayment plan that can help you to manage your debt without missing payments. If you do miss any payments, late payment charges may apply, which can worsen your financial difficulties.