Collateral Security explained, plus further mortgage assistance available
Collateral Security is an additional security provided by a borrower to secure their repayments on a mortgage.
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Below we explain Collateral Security in more detail and explain how we may be able to assist you with a mortgage or remortgage.
Table of Contents:
What is Collateral Security?
So, Collateral Security is, in mortgage terms, an additional security provided by a borrower to secure their pledge to repay the mortgage loan.
The collateral security has the effect of reducing the mortgage lender's risk, and in the case of a mortgage, the collateral security would be by documentation, invariably the Title Deeds to the property giving the lender rights to the property, which the lender may take possession of and sell to repay the debt, in the event that the mortgage payer defaults on their contractual obligation to make their mortgage payments.
Further information on collateral security and Mortgage / Remortgage help available from Shire Direct!
So hopefully we've given you a little insight into Collateral Security, and answered any initial questions you may have had about it. If you are looking for a mortgage or remortgage, why not get in touch with us, we'd love to hear from you! Our Freephone telephone line 08000 282 281, is open 7-days a week from 8am until 10pm, and our experienced and professionally qualified advisors will be more than happy to talk with you. Don't forget you can also enquire online anytime.
The overall cost for comparison is 9.8% APR.
The actual rate available will depend upon your circumstances. Ask for a personalised illustration. APR variable and based on a usual case. Most customers are likely to receive a lower rate or the same rate as our overall cost for comparison rate - learn more about APR.
There are no upfront broker fees.
However, a fee may be charged on successful completion. An indication is that on conforming cases (straightforward applications with no or minimal adverse credit) a fee may be charged of up to 1% of the amount advanced, typically £795 and will depend on your circumstances.
For non-conforming cases (where case research and processing may be more complex due to adverse credit or unusual circumstances), a fee may be charged of up to 3% of the amount advanced, typically £1,995.
THINK CAREFULLY BEFORE
SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED
IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Adding existing debt to your mortgage will increase the repayment term and overall cost.
