Assets can be of any type- home, undeveloped property, farm, boat, office blocks, business premises, jewellery or pieces of artistic creations. But there are some lenders who restrict acceptable assets to houses. The loan amount can range from £ 25,000 to £1,000,000.



The loan principle is decided by the lender on the basis of the equity present in the property. Based on the property valuation, the sum provided by the financial provider is generally up to 90 per cent of the property. But in some cases, lenders might be willing to grant a loan amount that is as high as 125 per cent of the property value.

Secured personal loans normally take a long processing time. This is due to the fact that property is involved. Legal issues like property rights have to be followed by the lenders. So the documentation is comparatively longer than unsecured loans. When a borrower signs on the dotted line for a secured loan, he is signing off the deed of the home to the lender. There is a misconception that the loan seeker has to move out of his property if he avails a secured loan. In reality, the borrower has the right to live in his home. It is only in the unlikely event of failure to pay back the instalment that the lender can initiate legal action against the client. The presence of collateral acts as a security for the lender as far as the borrowers repaying capacity is concerned.