Secured Loan

This is secured against your home and the loan can be used for absolutely any purpose from buying a car to paying for holidays through to anything else you may choose and because the loan is secured the rate will be the lowest available for your personal circumstances.

Secured loans can be for any amount from 1000 to 1 million. People with a bad credit history eg defaults, county court judgements (CCJ's), mortgage arrears, ex-bankrupts and IVA repair can be accepted.

Please click here to read about credit scoring and credit history.

Please click here to read about the different types of loans available.

To arrange a secured personal loan you will be required to offer some collateral as security for the moneylender. Collateral comes in various forms but the most common is your home, or other property. You do not have to own your home or property outright to secure the loan. You just need enough free equity. It is generally not possible to have more than one loan or mortgage secured on your property. So, if you already have a secured loan, but want another one, the new loan needs to be big enough to payoff the existing loan as well as give you the money that you want now.

A secured personal loan provides lenders with a safety net. If borrowers fail to keep up with their agreed repayments then the loan company can reclaim the property as compensation. This is why it is common for borrowers to shy away from securing loans, the risk of losing their home or property being too great. Although, having said this, if you took out an unsecured loan and defaulted, then the lender may try to seize any assets that you own in order to cover the debt so there is still a chance that you could lose your home.

However, securing a loan does offer a number of benefits. The APR (annual percentage rate) is generally lower than on unsecured loans, they feature more flexibility as far as repayment plans and terms go and are usually far easier to obtain. Unsecured loans are only normally given to consumers with excellent or good credit records, while secured loans are generally available to anyone who has the right collateral.

When deciding between a secured loan and an unsecured loan it is worth remembering that while unsecured loans are not tied to a house or property penalties for non-repayment will still be incurred.