A secured loan is a loan only offered to homeowners and mortgage holders where the loan provider is able to sell your house to get its money back if you can not repay your loan. The ‘secured’ bit means the lender gets ‘security’ not you, as if there are problems, they can repossess your house.
When we talk about loans from a building society or bank, these are unsecured loans, meaning there isn’t any link to your house.
If you’re looking to borrow a large amount of money, secured loans tend to range from £10,000 to £75,000.
Need to make some home improvements? Do you want to consolidate your debts? You can use secured loans for nearly any purpose.
Because secured loans are often for a large amount of money, the loan term can be flexible. This means you can pay off the loan over a long period of time, at an interest rate you’re able to afford.
When you can not use your own house to reduce the degree of risk you pose to lenders, a guarantor loan is another path to think about, though this type of loan does need a willing individual to take on some of the dangers on your behalf.
Additionally, you may wish to look into an unsecured personal loan. These loans do tend to come with higher interest rates than a secured loan yet they do not need any kind of security, and can give you the funds you require easily and quickly.