raising funds the secured way

[linz2011]

Hi

I need to raise £5k the only way I can do this is via a secured loan

Who are the better options? i do not want to borrow it for very long only about 3 months so I want to take it over minimum term and get rid without it costing the earth?

Any advice appreciated thanks

[rory32]

How bad is your credit rating Linz? Do you need it in cash?

[linz2011]

Bad cr Rory no I do not need cash a bank transfer or cheque is fine

[gizmo111]

ANy cahnce of a small increase on mortgage?

[linz2011]

Highly unlikely I am with a high street lender and do not want to lose that luxury and they would credit check before they would look to increase

[rory32]

I was thinking of 0% credit card offers (but you're probably not in a position to get one if your credit ratings really bad). Most of the best rates on loans are for over £5K. I hate people taking out secured loans unless they really have to. Have you talked to your bank to see if you can get an unsecured loan, as sometimes you have a better credit rating with your bank if you have been with them for a while than with other lenders.

[PriorityOne]

Short-term overdraft ? If they can see how you will be paying this back within the 3 month timeframe, then it might be worth a shot.... even though it's for a large amount.

[linz2011]

Hi rory

I fully understand where you are coming from and if I had a choice I would not be doing this - I do need to raise the funds but do not want to say why on open forums however, like I said it would only be for a short period so looking really for a company that does not charge loads for early settlement.
Am I right in thinking that the law now says the maximum they can charge is 2 months interest only?

[linz2011]

P1 I have no realistic chance of raising funds any other way but securing it - my credit rating is shot and i need the money - i do not have a good relationship with my bank and cannot prove I am paying it back as it would involve me asking a third party to be privvy to it and that would scupper the deal so to speak

[nuke em]

have you tried the UK social lending site zopa.com, this is where people ( not Banks) lend to each other . i think the rates are a little higher than you would get from say a high st lender but it is all, as i understand it unsecured. I just looked on there and the worst rate in gave as an example for "C" grade borrowers was 10% apr on a 5k loan

i have no connection with the site, but social lending i think is the next big thing, cutting out banks

[linz2011]

Hi thanks nuke em just tried it - no joy I am afraid but a very good site

[powelll]

Try IFA Promotions on 0800 0853 250 - This is basically the FSA but this number is where you can source reputable independent financial advisers local to you.

It may be worth phoning them & asking for those IFAs in your area who offer a free consultation & no fee service ( ie they would get a commission from any lender you went with but you can ask for one who searches the whole of the market for you ). The reason I suggest this is because usually these guys know the market and should be able to give you an idea of which lenders will deal with you.

What you want to avoid if possible is putting in lots of applications so be careful who you give permission to in terms of checking your cred ref file. Any searches will leave a 'footprint' for 12 months and although you say your file is shot anyway you don't want it any worse!!

Hope this helps; best of luck

[djdave]

Without wishing to be too nosey, why do you suddenly need £5k? I only ask because if it's to repay debt(s) there may be better ways of dealing with this.

Feel free to tell me to mind my own

[linz2011]

Hi noooooo wayyyyyy it is not to repay a DCA - it is complicated but needed short term

do not think you are nosey thanks for looking in

[djdave]

No problems, sorry I couldn't offer any more practical help