Want The Best Secured Loan Broker?
When you are considering taking out a secured loan, it can be difficult to know where to start and how to find the best deal. With so many options available and a huge number of lenders offering secured loans, many borrowers need some help navigating the choices they need to make. This is where a secured loan broker comes in.
If you are wondering what a secured loan broker is, what they do and why you should consider one for your finances, then read on for our expert guide. We are sharing our top tips and specialist advice on secured loan brokers and answering all your borrowing questions.
What Is A Secured Loan Broker?
A secured loan broker is an individual or company that specialises in matching borrowers with the right secured loan for their needs. A broker is not lending any money, and they do not use their own finances. Instead, they help people find a lender and a loan to meet specific requirements.
If you are after a secured loan but not sure where to start, then a secured loan broker will be able to analyse your current financial situation and then help find the best options for you. A broker is primarily there to help you navigate the entire loan process, from initial research right through to applications and documentation.
It is important to find a secured loan broker that you can trust and feel comfortable with. Discuss your options with a selection of brokers and choose one that you think you will be able to work well with.
What Does A Secured Loan Broker Do?
Many people have the misconception that secured loan brokers are there to help you find a loan, but in actual fact, they do much more than that. They will begin by getting to know you and understanding your current financial situation. Often brokers will look at your finances and credit report to get a good idea of the kind of lending options that will be available to you.
They will also discuss your lending requirements with you so that they can be sure exactly what you want to achieve from your new secured loan.
Once they have a good idea of your finances and requirements, they will shop around various lenders to find the very best secured loans for you. Brokers often have good relationships with many lenders, which means they can get the very best deals that could not be available publicly.
After finding some secured loan options, a broker will discuss these with you in detail to assist you in choosing the best loan for your needs.
After choosing a secured loan, a broker’s job is not yet done. They will then be there to help you through the application process and can assist you with getting all your documentation in order. A good secured loan broker will be with you throughout the entire process, from finding the best loan right through to the money reaching your bank account.
Brokers have a vast amount of experience in arranging loan agreements for individuals, and some will specialise in different forms of lending. Look out for brokers that are specialists in secured loans.
Why Choose A Secured Loan Broker?
Taking out a secured loan is a huge financial decision and is likely to have a significant impact on your life for many years into the future. There are a lot of different aspects to consider, from the loan term and using your assets as security, to early repayment fees and interest rates. It might be easy to research all these things online, but comparing the ups and downs of each can be confusing and extremely time-consuming.
One of the biggest benefits of using a secured loan broker is that they are incredibly familiar with the various secured loan options available and they know the market well. This makes them well placed to advise you on the best loan options to meet your needs and will take a huge amount of the legwork off your plate.
An experienced secured loan broker will already know what the different lenders expect and can often give you a good indication of whether or not your application will be accepted. This can be extremely helpful to your credit score, as making multiple loan applications and being rejected can impact your credit rating and chances of borrowing.
When you use a secured loan broker, they will be on hand to explain everything in simple, understandable terms. The finance world is full of jargon that can be very difficult to navigate on your own. A secured loan broker is there to ensure you fully understand your loan and what it means for you, as well as being on hand to answer any questions you may have.
Many loan brokers have access to exclusive deals that are not available publicly. A lot of lenders have some products that are not on the open market, and there are some loan providers that only work with brokers.
How Much Does A Secured Loan Broker Cost?
Secured loan brokers will charge a fee for their services, and this fee will vary between brokers. Some brokers may charge their fees before you receive your loan, whilst others might add their fees into the loan amount. A lot of secured loan brokers will give you the choice of how you want to pay their fees, so you can choose the best option for you.
Different brokerage firms charge in different ways; some may charge a fixed fee for their services and others may have an hourly rate to cover the amount of time spent on your loan. It is also common for secured loan brokers to charge a percentage of the total loan amount which could be between 8-15%.
All loan brokers should be authorised by the Financial Conduct Authority in order to offer their services. When applying for a loan through a broker, always check they are FCA authorised, as using an unauthorised firm will mean you are not protected by the Financial Ombudsman Service should things go wrong.