Spring Finance Secured Loan Review: Pros, Cons & Features
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Spring Finance secured loans: at a glance
Spring Finance offers secured loans, also known as second charge mortgages or homeowner loans. These are where the borrower uses their home as security for the loan they want to take out. Importantly, using your home as security means it could be repossessed by the lender if you fail to make loan repayments when you should.
You could choose a variable or fixed-rate secured loan and borrow against up to 80% of the equity in your home.
Partner SpotlightGet a quote without affecting your credit score.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a loan or any other debt secured on it.
Information for tenants
You must be a homeowner to apply for a Secured Loan via Norton
If you’re not a homeowner and would still like to search for a personal loan, then you can try searching for an unsecured loan via our loans eligibility service with Monevo.
Spring Finance Secured Loan
2 to 30 years
£10,000 to £200,000
80%
Fixed and Variable
- Must be based in England, Wales and mainland Scotland only
- 3 months employment history required
- Minimum gross annual household income of £18,000 – £15,000 must be earned from employment and/or private pensions
- Minimum property value of £100,000
This provider is available via our partner, Norton Finance.
Think carefully about securing debt on your home. Your home may be repossessed if you do not keep up repayments.
Consolidating multiple debts into one loan can extend the term of your borrowing and increase your cost of borrowing.
Important information: Our Reviews, Star Ratings and Editor’s Picks do not consider the product provider’s lending rates and therefore do not reflect how much it costs to borrow from the reviewed brand. Always compare rates from other providers when considering any type of borrowing. Loans for consumers with bad credit can have very high interest rates. Loan rates offered can be dependent on your personal circumstances and specific loan requirements. If you have poor credit, only borrow what is essential and if you can comfortably afford repayments.
Spring Finance secured loans pros & cons
Pros
- There is a wide range of loan terms to choose from.
Cons
- The maximum LTV of 80% is lower than what some lenders we’ve reviewed offer.
- Your property must be worth at least £100,000, whereas some lenders don’t have a minimum value.
- The maximum loan size of £200,000 is lower than some lenders we’ve reviewed.
Spring Finance loans overview
Spring Finance was established in 2011 and specialises in providing secured loans, which may also be called second charge mortgages or homeowner loans.
However, it only works with intermediaries, which means you have to apply through a mortgage broker. The advantage of using a broker is that they can often match you with products that are suited to your circumstances.
| Loan amounts | £10,000 to £200,000 |
| Term length | Two to 30 years |
| Maximum loan-to-value (LTV) | 80% LTV |
| Customer support | Phone, email |
Where Spring Finance secured loans stand out
You can choose from a wide range of loan terms
With Spring Finance, you could choose to pay back your loan over a term of between two and 30 years. Some lenders we’ve reviewed are only offering loans up to a maximum term of 25 years.
Paying back your loan over a longer time gives you the chance to lower your monthly repayments. But note that when you choose a longer repayment term, you’re likely to pay more in interest overall.
Where Spring Finance secured loans fall short
Lower maximum loan size
Spring Finance might not be an option if you’re looking for a larger loan, as the maximum loan size on offer is £200,000.
This is lower than other lenders we’ve reviewed, some of which offer loans of up to £1 million.
Higher minimum property value requirement
To be eligible for a Spring Finance homeowner loan, your property must be valued at £100,000 or higher.
Some other lenders we’ve reviewed don’t have this minimum requirement, so they could be worth looking at if your property is valued at less than £100,000.
» MORE: Compare best secured loans
What type of loans does Spring Finance offer?
Secured loans
Spring Finance offers secured loans in the form of homeowner loans.
A secured loan could give you access to a larger amount than an unsecured personal loan, at a potentially lower rate. Unsecured loans don’t ask you to use a high-value asset, such as your home, as collateral for the loan.
However, taking out a homeowner loan means that you’re borrowing money using the equity in your home as security for the loan. This gives the lender the option to repossess if you don’t make your repayments when you should.
The amount that you could borrow (and at what rate) will usually depend on the amount of equity you have in your home, your personal circumstances and the credit checks Spring Finance carries out on you.
» MORE: What is a secured loan?
Bridging loans
Spring Finance also offers bridging loans. These are a type of short-term loan designed to help borrowers ‘bridge’ a gap before securing longer-term financing.
You might take out a bridging loan if you want to buy a particular house but haven’t got the funds available (for example, if you haven’t sold your existing home yet).
What can I use a Spring Finance secured loan for?
Spring Finance home loans can be used for several reasons, including to:
- consolidate debt
- pay for a holiday or wedding
- pay for school fees
- buy a car
- cover the cost of home improvements
- cover the cost of making improvements to a rental property
» MORE: Secured vs unsecured debt consolidation
Why do people take out secured loans?
A secured loan could help to fund a larger purchase because the maximum loan size available is often more than what’s available through unsecured personal loans.
People sometimes find that the chance of being accepted for a secured loan might be better than the chance of being accepted for an unsecured loan, due to their circumstances. For example, they might be self-employed or have a bad credit score.
» MORE: What are the differences between secured and unsecured loans?
Take a look at some of the other secured loan lenders we review.
Spring Finance secured loan eligibility criteria
Spring Finance requires a minimum household income of £18,000, with £15,000 of that needing to be earned from employment and private pensions.
You must own a home in either England, Wales or mainland Scotland, and the minimum property value considered is £100,000.
» MORE: Should you take out a loan against your house?
Spring Finance secured loan features
Rates
Spring Finance offers both variable and fixed-rate homeowner loans. A fixed-rate means that the interest you pay is fixed for a specified period – with Spring Finance, this could be either two or five years. A fixed-rate can give you certainty over your monthly repayments.
A variable rate, on the other hand, means that the interest rate you pay could fluctuate. Variable rates are usually based on a benchmark rate that has the potential to change.
Keep in mind that the rate you receive is down to your circumstances. Spring Finance may base it on factors including your credit history, credit rating and financial status.
» MORE: How are fixed and variable mortgages different?
Loan-to-value ratios
With Spring Finance, you could apply for a secured loan with a maximum 80% LTV. This is lower than some other lenders we’ve reviewed, but keep in mind that higher LTVs come with increased risk. When considering a higher LTV, it’s important to think about the impact it could have if your financial circumstances change, or property values drop.
Making overpayments and paying off a loan early
Making overpayments can help you shorten the term of your loan, or lower your future monthly repayments.
Spring Finance says that you can overpay or repay your loan in full at any time, but there may be early repayment charges involved. The fees could be different depending on whether you’re on a variable or fixed-rate.
Make sure to check the terms and conditions of your loan before making overpayments, because lenders might apply a cap on overpayment amounts before you’re hit by early repayment charges.
And if you think that you might eventually repay your loan early, clarify the terms of your agreement with Spring Finance before signing, to ensure you know about the fees involved.
Customer support
You can contact Spring Finance over the phone and by email. You can also use a form to request a callback.
There are separate contact details for customer services and general enquiries.
Customer ratings
Spring Finance doesn’t have any reviews on the usual platforms such as Trustpilot and Feefo. This makes it difficult to assess whether existing customers have had a good experience, so it’s important to talk to your broker about Spring Finance’s reputation.
How can I apply to Spring Finance?
You can only apply for a Spring Finance loan through a broker or mortgage professional.
What information do I need?
When applying for a homeowner loan you should usually be prepared to share:
- proof of your address and identity (a utility bill or bank statement and/or your driving licence or passport will usually suffice)
- recent payslips or a P60 if you’re employed
- self-assessment forms or SA302s if you’re self-employed
- proof of any other income you receive from pensions or benefits
- your latest annual mortgage statement
- information relating to any outstanding debts
- recent bank statements showing your income and expenditure
How long does it take to apply?
Spring Finance doesn’t have any indicative timescales on its website.
Spring Finance FAQs
Spring Finance is the trading name of Spring Finance Group.
Spring Finance is regulated and authorised by the Financial Conduct Authority, the financial services regulator in the UK.
Help if you’re struggling with debt
Late repayments can cause you serious money problems. Consolidating multiple debts into one loan can extend the term of your borrowing and increase your cost of borrowing
If you are struggling with debt, you can seek advice from a debt advice service, such as:
- Citizens Advice
- MoneyHelper (formerly The Money Advice Service)
- National Debtline
- StepChange
- The Money Charity
Think carefully about securing debt on your home. Your home may be repossessed if you do not keep up repayments.
Late repayments can cause you serious money problems.
Consolidating multiple debts into one loan can extend the term of your borrowing and increase your cost of borrowing.
Review methodology
At NerdWallet UK, we base our reviews and our ‘Best’ pages on the results of surveys we undertook about what was important to people who use these products. This allows us to look at products impartially of any commercial arrangements we have and fairly rate the products on the same set of criteria.
Best means our ‘Best’ and is based only on what products we have aligned to our surveys, which form the basis of our reviews and ratings. This means that there will be other products on the market that we have not included in our ‘Best’ pages. Best does not mean it’s best for you, nor does it mean the ‘cheapest’.
Our reviews may display lenders’ rates. This additional information has not been included in our evaluations but is still very important when choosing a product. Rates offered can depend on circumstances, amount and term. Always check details before proceeding with any financial product.
Product details reflect the information that was available at that time but may have changed since. We strive to give you a review on as many products as possible, but there will be products not included on the market. The review is our opinion, but it does not constitute advice, recommendation or suitability for your financial circumstances.
While we try to provide you with accurate information, the providers can change the terms of their products at any time, therefore it is advisable to check the terms before you proceed.
You can view our full review methodology here.
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