How much can I borrow?

The amount that can be borrowed on a secured loan depends mainly on the asset being secured and your previous credit rating. The lender will assess your previous financial situation and make a decision on how much they are prepared to lend you based on this.

If you require a secured loan and are using your property as the securing asset then lenders will want to know how much equity you have in your property. The amount of equity in your property can be calculated in the following way:

Equity = Market value of property – Mortgage amount owed

If your house is valued at £100k and you only have a £50k mortgage left to pay then the unused equity in your property is £50k. Most lenders will be more than happy to supply a loan secured against this property as they know that £50k is available in the property if it were to be sold because you couldn’t make the repayments.

If you have a good credit rating, property to secure the loan against and valid proof that you can afford the repayments then some lenders can offer up to as much as £250k.

You should be very cautious of any lender willing to offer you a secured loan for more than you believe appropriate and a good sign that you should question their standards and practices.

Lenders do operate a very strict policy on how much they are prepared to lend but your personal financial circumstances will be the deciding factor on how much you can get as a secured loan.

Go Back to the main Secured Loans FAQ page