Secured Lending

We understand financing challenges from the perspective of both lender and borrower, which allows us to navigate any potential issue that may arise during the funding process.

Assured legal advice is essential to protect your investment, inform strategic decisions and achieve the best possible value from a secured lending agreement. We deliver practical solutions to even the most complex of lending arrangements, always on time and within your fixed budget.

We have extensive experience of financing different asset classes, including retail parks, large scale residential developments and hotel and leisure facilities.

Whether you are looking to finance the acquisition of land or buildings, manage a refinancing operation or structure transactions in line with due diligence, our secured lending solicitors are here to support your primary objectives.

Unrivalled commercial property knowledge

We act for private entities, banks and other lending institutions, including those providing short-term bridging finance, on a full range of funding services. We maintain strong relationships with clients such as Handelsbanken, Santander and Bank of East Asia.

Contact us using this form or call us on
0161 969 3131

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Frequently Asked Questions

What is the meaning of secured lending?

Secured lending is a loan where the lender takes security for the debt until it’s fully repaid, and the security is usually a charge secured against an asset that you own. This could be your home, or anything of equal or similar value to the size of the loan you are taking out. So in the case of a residential mortgage the lender will take a legal charge against the legal title to the house.

If the loan is not repaid, you risk losing the asset given to the lender as security. As such, this is motivation to stay on top of payments. You must also carefully consider whether you have enough income to make the loan repayments, as failure to do so could end in drastic circumstances such as loss of your home in the case of a residential mortgage.

What are the pros and cons of a secured loan?

With a secured loan the Lender is more confident that they will get their money back so the interest rates tend to be cheaper than with unsecured loans, and they are willing to lend larger sums.

If you are realistic about how much you can repay and at what pace then you may well benefit from secured lending, but if there is not a regular stream of income which could lead to cash flow problems, you may want to consider other options and speak with an expert.

Is a secured loan cheaper than an unsecured loan?

Yes, generally speaking secured loans are cheaper and have lower interest rates as they are classed as less of a risk to lenders. This is because the lender holds the asset as security for payment, and should you default on the loan the lender can ultimately sell the asset. For example a residential mortgage is a Secured Loan.

Secured loans carry more direct risk to the borrower as you give the security up front so the lender could repossess the asset if you default on the payments. They would however have to follow a legal process to legally take the asset, but ultimately the asset over which they have this right is already identified, for example in the case of a residential mortgage the house.

If you have an unsecured loan and you default on your repayments, the outstanding repayment becomes a personal debt and the lender would have to take legal action to get judgement against you for a sum of money before being able to take steps to enforce the judgment. The lender could ask bailiffs to enforce the judgement by seizing your goods, or make an application to make you bankrupt. So default on an unsecured loan can also lead to you losing your assets.