Secured loans use the net value of the property as security for the loan. As a result of inflation and part repayment of mortgages many home owners have a property which is worth far more than the mortgage they owe on it.

A home loan enables you to make use of this asset by providing security for your loan, whether you own a house, flat, bungalow or cottage. Being a home owner affords you better status in the eyes of lenders.

This allows home owners to obtain excellent interest rates.

You do not even have to have any equity in your property, some lenders will lend over 125% of the value of the property (subject to status).

A secured loan will take around 18 days to complete due to the mandatory consideration period under the Consumer Credit Act 1974, except those loans over £25,500 which can be done in a matter of days.

The minimum amount is usually £5000 up to £150,000 but this is often dependant on the available equity in the property. Some companies will charge fees to arrange this type of loan although there are plenty that don't.

Loan periods generally start from 5 years up to 25 or 30 years for the larger amounts.


But Beware...

Because secured personal loans have your property set against them as security for the amount borrowed, if you fail to repay your loan you may be at risk of losing your property.

Secured personal loans usually offer a lower rate of interest compared to unsecured loans. Some lenders offer flexible loans allowing you the option of over-payments or under-payments. This could be of benefit, depending on your personal circumstances, however, the rates of interest charged on these loans can sometimes be uncompetitive.



Click here for our selected list of companies who can offer secured loans.