Before we delve into how long a secured loan application takes, it’s worth reviewing precisely what it is. A secured loan is one that requires you to provide an asset to avail of the loan.
In simple terms, you need to offer collateral to secure the loan. Some of the most common types of secured loans are home loans and car loans.
The borrower must pledge the house or car that he is purchasing as collateral.
If the loan repayments are not made, the lender has the power to repossess the collateral and then sell it to cover any losses.
Since this type of loan is less risky from the lender’s viewpoint, secured loans are the best way to obtain larger loan amounts.
How long does it take to get a secured loan?
Getting your secured loan request approved typically takes around two to four weeks. However, the duration varies from lender to lender and depends on various factors.
For example, your own administration organisation is a factor that will determine how fast you will receive a decision since you will need to supply different documents.
Another factor is whether the asset you are using as security needs to be re-evaluated.
An evaluation helps the lender decide how much they are willing to offer. However, re-evaluations take time and can extend your application time.
Once the loan is approved, you should receive your funds within a couple of working days. Some lenders deposit the money into your account the same day as you get your loan approved notice.
While some secured loans are completed faster than others, secured loans typically take longer than personal loans because of the extra work involved in securing a loan against an asset.
For instance, lenders may require checks on the property or a surveyor to come and value the property for a full report. Any reviews that need further critique will also cause further delay to the loan application.
Fortunately, you can speed up your loan approval process. Keep reading below to find out.
What details will I need to provide to get a secured loan?
- Proof of identity (passport, driver’s license).
- Proof of employment status (pay-slip, accountant’s details or SA302).
- Proof of income (pay-slip, bank statement, accountant’s details or SA302).
- Proof of ownership of property/residential address (mortgage/utility bill).
Ways to speed up your secured loan approval
Do Your Research
When shopping for a secured loan, researching the different online products and rates is essential.
Some lenders operate under strict criteria, while others lend even to people with poor credit.
Therefore, if you don’t have a good credit score, you should avoid lenders who don’t loan to people with poor credit.
Also, lenders vary in the amount they allow you to borrow and the time you can take to repay the loan.
For example, some offer secured loans for five years, while others allow up to 35 years. Once you know which type of lender you need, you can save yourself some hassle by approaching those offering the amount and loan period you require.
Furthermore, you should consider whether you really need to get a secured loan.
For example, if your income is stable and credit status is good or fair, you might be eligible for an unsecured loan and so avoid needing to use your home or property as security.
Some people conclude that a secured loan is not the right choice for them and opt for a remortgage or equity release as a better deal.
Another way to speed up the secured loan process is to approach a reputable secured loan broker. They can help you transfer your loan request to multiple lenders in the market all at once, speeding up the process and your chance of getting approved.
Related quick help guides:
- Secured loans brokers.
- Secured loans for pensioners.
- Secured loans for self employed.
- Interest only secured loans.
- Can I get a secured loan on a buy to let property?
- Secured business loans.
Identify what amount you can borrow and for what time
Calculating the loan amount you require and how long for will definitely make your secured loan application process faster.
Perhaps you want to borrow the highest amount possible, like £100,000. But can you afford it? When you calculate your income and costs, you might see that you can only afford to take a £20,000 loan.
Identifying how much you can borrow can help you narrow down your search and find the best loan for you.
In addition, it helps speed up things if you request a loan amount that is in line with the same value as your property or your earnings. Asking for a sum way over your affordability will force lenders to disapprove your application.
Gather all your documents
To be approved for a loan, you will be requested to supply some information, including proof of identity, income, employment and property details. So, having all these documents handy on your computer to send to your lender will help to speed up the process further.
Most of the information you require can be obtained from your employer, online banking portal, or mortgage provider and downloaded for free.
Have all documents about your property ready. If you want to buy a property with a loan, acquire all the possible information about it. You will need information such as the address, its estimated valuation, and how much equity you have in it.
Try to email your information
Most lenders will have you send your documents online. However, some lenders might ask you to sign and send them by post.
You can always ask your lender if you can send them online to help speed things up.
If your lender insists on using post, use first-class mail and post them early in the day so that they will arrive the next day instead of three days later.
Apply at the right time
Do you want your secured loan to get approved and funded faster? Then you need to know that some times are better to apply than others.
Never try to apply for a loan on a Sunday, a public holiday or during breaks like Christmas. You will certainly not get a quick reply from the lender.
Other things to consider are current market conditions; times of the year when loan processes are slow because lenders are extra sensitive.
For example, a dip in the economy or annual budgets might make lenders extra cautious about lending. Similarly, if you apply during Christmas and summer holidays, fewer solicitors and surveyors are available to help you get your loan.
By following our useful tips and speedy-up loan tricks, you will be able to successfully get your secured loan within four weeks or less without a problem!
How long does a secured loan application take to complete?
Give Loanable a call today on 01925 988 055 and they will provide you with the best deals available to meet your circumstances and consider any credit history you may have. With their expert advice, they can guide you through the process and give you the knowledge and confidence it takes to acquire a secured loan that is right for you.
If you have read all the information on secured loans carefully and feel that you want to proceed with a secure loan, get in touch with one of Loanable’s secured loan experts by emailing firstname.lastname@example.org who can work with you to find the best deal for your needs and circumstances.