Secured loans are readily available to homeowners in UK. Most lenders feel secure lending money to those who can pledge their residential property as collateral. Hefty amounts can therefore be procured for a longer tenure as secured loans. The loan period can stretch up to 30 years and the loan amount depends on the home equity valuated by the lender.

Secured loans for borrowers with bad credit

Homeowners with bad credit are at advantage over others. With a fixed asset i.e. home as the collateral, the lender will be inclined to give Secured loans to the customers, even if they have had a poor credit record. First let us see what factors make your credit report adverse.

Arrears, missed payments and late payments in your other loan or credit card history

Defaults in your repayment tenure

CCJs (County court judgments against you)

In case of bankruptcy

Frequent job changes and changes in the address

A negative or less than 0.36 DTI (debt to income ratio)

Too many loans running at the same time

Small disposable income

Frequent cheque bounces

So, if you have earned any of the above stated disadvantages, there are chances that lenders may not approve your loan. However, still you are a homeowner and don't have any other mortgage against your residential property, there are good enough chances of your loan getting approved. Every lender has one major satisfactory factor when he grants secured loans and that is in case you fail to repay the loan, he can repossess your home. Lender's motivation is borrower's risk.

So, before you make any decision regarding secured loans, just ask yourself one question honestly “Will I be ale to repay the loan?" If you are doubtful, never ever go for secured loans. You may end up loosing your most treasured procession i.e. your home.