A Secured Loan in brief

Secured Loans work on the principle that the borrower gives the lender security against the loan. This security is usually a property belonging to the borrower and will be in the form of a charge against the property. If the property is already subject to a charge (because it is already mortgaged) the security will take the form of a second charge, which can be claimed when the first charge has been satisfied.

Secured Loans do not normally come with strings attached and can usually be used for debt consolidation purposes. They can be for varying amounts from as little as £3000 up to £50000. The term for repayment is variable and can be set from between three years and twenty-five years but penalty charges sometimes apply if you repay your loan early.

Monthly repayments vary depending on the amount borrowed, the term of the loan and the interest rate charged. Personal circumstances such as your credit worthiness will influence the lender and determine what they are prepared to lend. Always compare two or three different providers to be sure that the loan you are offered is the most competitive.

Secured Loans are often easier to achieve than unsecured loans because of the extra security a property charge gives to the lender. This extra security has the added advantage of allowing people with adverse credit or people who are self employed the opportunity to borrow money when an unsecured loan is unobtainable.