Secured loans are loans that are secured on your property, usually on your own home. For this reason secured loans are generally the cheapest type of loan. The very fact that the loan is effectively guaranteed by your property means that it is a safe bet for the lender, therefore the interest rate for a secured loan will tend to be relatively low. In fact it is usually only a few percent above base rate, depending on your credit status and certain other points referenced by a standard credit check.



Secured loans for homeowners are available for many different purposes including debt consolidation. The fact that they are cheaper than other types of loan means that they are ideal for transferring money borrowed at much higher rates (as with credit cards, for example) to a lower APR solution, thus reducing monthly outgoings considerably.

Secured loan applications allow you to borrow more and repay over a longer period than other types of personal loan; in fact you may be able to borrow up to 35 years. This will reduce your monthly repayments even more.

Secured Loans can sometimes be a much better option than a re-mortgage for people who want to consolidate their debts, to pay off outstanding loans and credit card debts, etc. If you are locked into a tie-in period with your mortgage company you would have to pay a large penalty for re-mortgaging (called a redemption fee or redemption charge) with another mortgage lender.

If you need to raise the required funds very quickly, most secured loan applications are completed very swiftly indeed, usually within 10 to14 days. Secured loan applications are even quicker if done using an online form on the Internet with a trusted provider.

You may be in arrears with your current lender and want to avoid disturbing your current low rate for a sub-prime rate. This is another reason for keeping your existing mortgage and raising extra funds through a secured loan.

Secured loan applications usually allow you to borrow more than the total value of your home (subject to status). Some lenders will allow you to borrow up to 125% of your property value. Usually such lenders are not the high street banks but specialist lenders. Borrowing in excess of the total value of your home may seem strange at first, but it makes complete sense when considering that the value of your home will increase with the passage of time anyway. Also, combined with the lower rates of monthly payment associated with a longer repayment period and a lower APR (see both points above) such an arrangement is ideal for releasing the largest amount of equity possible to raise funds for whatever purpose you have in mind.

In conclusion, secured loan applications are among the most efficient type of borrowing product as they can allow you to raise the cheapest funding for many different purposes, including debt consolidation, for the lowest monthly repayment.