Secured Loans

A Secured Loan is a loan that has been specially designed for homeowners. The borrower secures the amount of the loan against the value of their home.
These are sometimes referred to as a ‘homeowner loan’ as this type of loan is only available to people who own their home.

What’s the difference between a Secured Loan and a Personal Loan?
The key difference is that a Secured Loan is ‘secured against your home’.  This means that if you fail to repay your loan, the bank can make claim to your house.

How much can I borrow?
The amount available ranges from £3,000 to £50,000.  It is possible to borrow up to £100,000.

The amount you can borrow depends on a number of factors.  Each lender has their own criteria, but the following factors are considered;

• your credit rating
• your income and outgoings
• the value of your home
• your employment status

What can it be used for?
A Secured Loan can be used for any purpose.  One of the most popular uses is for Debt Consolidation - where the borrower consolidates a range of smaller debts into one, lengthening the APR and duration of their loan and reducing their monthly repayments.

Struggling to get a Loan?
Secured Loans are easier to obtain than Unsecured Loans, making them more accessible to borrowers with bad credit.  This is because the lender balances the higher risk of lending with the fact that they are entitled to take the borrowers home if they do not pay.