How Long Does a Secured Loan Take?

If you’re considering a secured loan, one of the first questions on your mind is probably, “How long will it take to get approved?”

Whether you’re consolidating debts, renovating your home, or making a big purchase, timing can make all the difference.

The good news is that secured loan applications can often be processed quicker than you might expect, but the timeline depends on several factors—from how quickly you provide the required documents to the lender’s internal processes.

In this guide, we’ll walk you through the typical steps and what you can do to speed things up.

1. The secured loan application process can take between one to four weeks on average, depending on the provider you use. However, some applications may take longer.

2. The amount of time your application takes depends on whether you provide any information the lender requests and your current financial situation.

3. Preparing in advance and working with an experienced secured loan broker can simplify the process.

Secured loans are borrowing agreements in which applicants offer a valuable asset as security. In most cases, this is a home, but some specialist loan providers may be willing to accept other valuable assets.

If you have equity in your property, you can use it to apply for a secured loan. The lender will decide how much to offer. The main benefits of secured loans are the opportunity to fund large purchases and lower interest rates.

Because you offer your property as security, lenders don’t place as much emphasis on your credit report, making secured loans more accessible than unsecured loans.

However, it’s essential to remember that you’re usually locked into longer repayment terms, and defaulting on the loan puts your home at risk.

How long does it take to get a secured loan?

The secured loan process takes only one week to four weeks, although it can be longer. Here are the steps involved in making an application:

1. Finding A Broker: While you can find a secured loan through mainstream channels, many lenders have set eligibility criteria. Brokers have access to a broader network of lenders that judge applications on an individual basis, giving you more flexibility and access to the best deals.
2. Getting Consent: Your current mortgage provider must consent to a second charge before applying for a secured loan. You’ll usually submit a written application, which our brokers can help you with.
3. Individual Circumstances: While you can get a secured loan with a less-than-excellent credit score, your options might be limited. The application process can take longer if you have credit history issues or previously defaulted on other borrowing.
4. Comparing Lenders: Your broker will look at your circumstances and access a network of lenders. You’ll have the opportunity to compare rates and terms to find the best deal.
5. Documentation: All lenders will ask to see documentation, including proof of equity, your current mortgage agreement, monthly outgoings, and other information. You can speed up your application by collecting this information in advance.
6. Submitting the Application: Once your broker has all the documentation, they’ll help you fill in the application and submit it to the lender. The lender will then contact you with any queries regarding your personal information.
7. Valuation: Most secured loan companies will also conduct a valuation of your property to assess its suitability as an asset.
8. Completion: Once the lender is happy with the information, they’ll send you a contract, and you’ll typically receive the funds within 48 hours.

In many cases, the amount of time your application takes depends on lender processing times and the property valuation. However, there are steps you can take to speed up the process. Let’s take a look at them now.

• Slow Responses: Secured loan providers will often request information throughout different stages of your application. Failure to respond to these requests promptly will delay the process, so stay in touch with your broker and check your emails regularly.
• Missing Documents: If you don’t have your documents ready, make an effort to collect them. Missing documents can slow down the application, as the lender won’t issue the loan without seeing them. When possible, make copies of your utility bills and store all the information safely.
• Physical Valuations: Many lenders perform desktop property valuations, which means they use current rates to work out your property’s market value. In some cases, the lender might need to conduct a physical valuation, which can prolong the application.

Secured loans are highly accessible and can help you achieve long-term financial goals – whether you’re using them to make home improvements, purchase a new car or consolidate your debts.

Believe Money works with homeowners from all backgrounds, including self-employed individuals and people with a less-than-good credit score. Our brokers can help you secure your desired loan amount and look forward to favourable terms.

Please contact us today for a free zero-obligation consultation.