If you’ve decided a secured loan is the best choice for you, then your first step might be to approach your mortgage lender to see what they offer. Some will offer special loan deals to those borrowers who have a good record repaying their mortgage.
Next, check some comparison websites to see if you can get a better deal with another lender. But remember comparison websites do not always offer a comprehensive selection of deals. As well as researching the cost of borrowing, be sure to compare the terms and conditions of each loan and what could happen if you’re unable to repay.
If you’re comparing lots of deals, for example, on a comparison site, check whether doing this will show up on your credit file. Some lenders will carry out a full credit check on you before providing a quote, so it can look like you’ve actually applied for the loan.
If this happens lots of times, it might harm your credit rating. Ask if they offer a ‘quotation search’ or ‘soft search credit check’ or eligibility checker instead, which doesn’t show up on your credit reference file – this can be useful when you are shopping around and not yet ready to apply.