Secured Loan
Want to borrow more than £5,000?
If you have savings with Wessex, we may be able to use them as security and consider a larger personal loan.
How does a Secured Loan work?
The idea is simple. Savings give us additional security, but we still need to make sure the loan is affordable and right for your circumstances.
How much can I borrow?
We can consider lending up to 3 times the savings held with us as security, subject to a maximum loan of £15,000.
For example, £3,000 in eligible savings could support an application to borrow up to £9,000.
What happens to my savings?
Your savings remain yours, but the amount being used to support the loan is held with us as secured shares while the loan is outstanding.
Those secured shares cannot normally be withdrawn while they are needed as security for the loan.
What if the savings are held somewhere else?
That does not necessarily stop you applying. If you have savings with another bank or savings provider, you can transfer them to an account with us so they can be used as security for the loan.
A family member or friend can also provide savings to support your application by transferring savings to us to be held as security.
Can I withdraw some of my savings as the loan reduces?
Yes. As your loan balance reduces, some of your secured shares can be released.
You must always keep enough savings secured with us to maintain the required relationship between the savings and the outstanding loan balance.
In simple terms, the loan can be up to 3 times the amount of savings held as security. As the loan balance falls, the amount of savings that needs to remain secured can fall as well.
If I have enough savings, will the loan be approved?
No. Every loan is assessed on affordability.
Even if the savings would support a loan of up to 3 times their value, we still need to make sure your income is enough to meet the repayments comfortably alongside your existing commitments and normal household spending.
The savings give us additional security, but they do not replace the need for the loan to be affordable.
What interest rate will I pay?
The rate depends on your credit profile and the outcome of our assessment. Once we have assessed your application, we will tell you the rate we can offer before you decide whether to proceed.
Because the loan is supported by savings held as security, a Secured Loan will normally attract one of our lower rates. This is not guaranteed to be our lowest rate, and the rate offered will depend on your individual circumstances and credit profile.
The rate will not exceed 42.6% APR and, for applicants with a good credit history, it is likely to be considerably lower.
Talk to us about a Secured Loan.
If you have savings with us or savings you can transfer to us, and think a Secured Loan might work for you, get in touch. We can explain how it works, talk through your circumstances and tell you what the next step would be.
Make an enquiry
Making an enquiry does not commit you to applying for a loan.