Maximum Secured loan available increases to £200,000

Today Shawbrook bank announced that it is increasing the maximum amount it will lend as part of its Platinum loan range with rates starting at 6.9% APR - currently the most competitive in the market - to £200,000 from £125,00 previously. This is the latest move in their strategy to attract more High Net Worth Individuals to the Secured Loan market instead of going for a remortgage. The Platinum Loan range from Shawbrook is aimed at those with good credit and is a flexible and affordable product. As well as being able to draw down up to £200,000 the borrower will benefit from a market-beating rate of 6.9% and have the ability to make overpayments at any time without penalty, In addition the loan can be paid off early with just 28 days' notice and a £195 admin fee. This step is the latest to highlight the growth the Secured loan market is enjoying at the moment. A combination of factors is driving this:

• Many people are in Tracker mortgages at a few basis points over Base rate and so are very reluctant to remortgage. If they need more finance a Secured loan is usually the best option for them.
• Similarly many Borrowers are on Interest Only mortgages at LTVs that do not allow them remortgage now due to the restrictions many lenders have put in these types of mortgages. If these borrowers need to raise extra capital a Secured Loan is usually the best option
• The tough times of the past few years have left many people with some adverse credit meaning that they are no longer eligible for Unsecured loans and so have to look at the Secured Loan option.
• The Unsecured loan market, even for Prime borrowers, will usually get you no more than a £20,000 loan. For larger amounts to facilitate home improvements or debt consolidation a Secured Loan is the only way this can happen.
• More Lenders have come to the market in recent years bringing not just an increase in competition with consequent downward pressure on rates but also a variety of new products or those with variously poor credit, low/unprovable income and restricted equity

With many of these factors set to either continue or increase we think the Secured Loan market will continue to grow and we expect to see other lenders increasig both the amount they will lend and their range of products to. For access to a whole of market Secured Loan service please either fill in our Secured Loan application form here or call us on 0845 1260350