Secured loans

What is a secured loan?

A secured loan, also known as a homeowner loan, requires the borrower to provide the lender with a method of security. This is usually the borrower's property. Secured loans are generally of a higher value than that of a personal loan (unsecured loan), this is because there is much less risk to the lender.

Which secured loan is right for me?

Secured loan amounts vary from as little as £1,000 up to £100,000+ and are usually repaid monthly over a set term, this can be anything from 2 years to over 25 years.

When choosing a secured loan take note of the APR (Annual Percentage Rate). This is the amount of interest the lender will place upon your loan, the APR will vary between lenders and is quoted in the following format: 8.9% APR. The APR amount is decided by your personal circumstances i.e loan amount, credit history, your salary etc. A 'Typical APR' is the figure usually quoted by the lender and may not be APR you end up with.

What if I lose my job or become ill?

If you are unable to work due to unemployment or long term illness it is crucial that you keep up the regular payments on your secured loan. Failure to do so can result in repossession of your property which in turn damages your credit rating. Fortunately you can take out a mortgage protection or income protection policy which will cover you in the event of accident, sickness, unemployment or death.

How do I apply for a secured loan?

For a secured loan quote or to compare secured loans please click here. For a detailed list of secured loan lenders, see our secured loan providers section.