4 Things to consider before taking a loan against your property
With a surge in secured lending, i.e. second charge, sweeping the UK alternative commercial market, SME Finances would like to give you some advice before progressing an application;
- Credit check: As with any new application for a commercial product, use one of the many credit checks available online
- Affordability: If you have any existing loans, make sure they’re paid up or, at the very least, there is still an affordability to service a new facility with the existing in the background.
- Shop around: There are a lot of lenders willing to provide a product that fits and, as with all competition, the prices will vary.
- Loan to value [LTV]: A quick bit of math will indicate how much money is locked away in your property – with most lenders offering anything up to 60% LTV
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