A Secured Loan is exactly that, a loan that is secured on the remaining equity in your house, in other words, the remaining value after any debts or mortgages have been paid. For example, if your property is worth £100,000 & you owe £75,000 the realizable equity is £25,000 of which you could borrow. This situation is quite common where recent house price increases have increased the value of properties over the mortgage originally secured against it.

Typically loans secured against an asset, such as your house, attract a lower interest rate than unsecured or personal loans, this is due to the fact the lender has the security that they can recover the funds should you default. It's not always the case that secured loans have lower interest rates so it's always best to shop around for the best deal.

The amount you can borrow and the length of time the loan is borrowed over is usually longer than an unsecured loan, some lenders will offer loans up to £100,000 over 25 years, more like a standard mortgage in those respects whilst unsecured loans are typically £5,000 - £25,000 over 1 - 5 years. Secured Loans will typically have a variable interest rate so bear in mind that the amount you are repaying may change.

The usual criteria for a secured loan applicant will be a UK homeowner wanting to borrow over £5,000. There will always be additional criteria unique to every lender so always check carefully before applying.

What Can I Use The Loan For?
Loans can be used, pretty much, for anything. Be very careful before taking out a secured loan that it's right for you as your home may be repossessed if you don't keep up with the repayments. Providing you understand that risk then a secured loan can be a good way of consolidating debts, paying for that dream extension, conservatory, holiday or car.

If you have debts on credit cards & store cards then you can quite often reduce your monthly outgoings to a more manageable level with a single lower payment by consolidating all your debts into one single loan.

Who Do Secured Loans Suit?
Secured Loans are suitable for people who would otherwise struggle to be accepted for an unsecured loan, it could be you've recently become self employed, have a poor credit history or CCJ's (county court judgment), either way the risk is lower for the lender on a secured loan so you've got more chance of being accepted. Be aware that interest rates vary depending upon your circumstances, shop around, apply for a few and see who comes up trumps. Visit our lenders page for more links to secured loan lenders.

In summary Secured Loans are ideal if...