A Secured Loan is one that requires you to use your property as security against the loan. This means in order to take out a Secured Loan you will need to be a house owner, and this includes if you are still paying off a mortgage. It does however mean that you if fail to keep up the repayments on your Secured Loan, you could risk losing your home.



The amount you will be able to borrow with a Secured Loan depends on the borrower you choose to use and your individual circumstances. The amount you can borrow, the term available and the interest (APR) you will have to pay back on the Secured Loan depend on:

- the value of your property

- your ability to repay the loan

- your personal circumstances

Before taking out a Secured Loan it is important that you understand how it works, how much you will have to repay, and that you are able to manage the repayments. Remember, that if you fail to keep up with repayments on a Secured Loan then you risk losing your property.

Who are Secured Loans for?

A Secured Loan allow you to borrow substaintially more money than a personal loan, and also repay the money over a longer period, sometimes up to 25 years. A Secured Loan can usually be used for any purpose and are often available to people who are unable to take out other types of loan, as long as they own their own property.

Examples of this are people who are self-employed or struggle to prove their income, those who have recently changed jobs, and people who have had credit problems in the past. Those who wish to borrow a larger amount of money than available with a personal loan, or want a longer time period to repay the loan should consider a Secured Loan.

Finding a Secured Loan

There are many lenders who offer Secured Loans but whether or not they will offer you one will depend on your personal circumstances. You should approach a number of Secured Loan companies and obtain a number of quotes. Be sure of how much you want to borrow and do not get talked into borrowing more money that you require. Be honest with the company about your personal circumstances, especially your repayment details, as this may lead you to getting into problems repaying your loan. Look at the time allowed to repay the loan and try to weigh this against the APR that is offered on the repayment of the loan.

For example, a loan with a lower APR but repaid over a longer period of time may offer lower monthly repayments but could lead to you paying back more in the long term. At the same this may also allow you to borrow more and pay it off over a longer period with lower monthly repayments.

You may also find that you are offered a Secured Loan with a broker rather than a lender themself. A broker will offer you a Secured Loan, offer you a time frame to repay it over, and set your APR on behalf of the lender. Although you may wish to skip the middleman and deal with the lender directly, you may find that some lenders will not deal directly with borrowers, and a broker may have access to a greater number of Secured Loans from various lenders, offering you a better deal.