Secured Loans

A secured loan is any loan that requires the borrower to provide the lender with some form of security. In the case of secured loans, the security will be the borrower's property, regardless of whether it is mortgaged or owned outright.

Please note that our Secured Loans information is not typically regulated by the FSA

Loans secured against property that is already mortgaged are known as second charges, whereas loans secured against a property owned outright with no existing mortgage in place are known as first charges.

Secured home-owner loans are available in varying amounts and for many different purposes, including debt consolidation and home improvements. The amount available usually ranges from £3,000 to £50,000, although some lenders will consider lending up to £100,000.

The amount borrowed is repaid monthly over a term agreed at the outset, which will usually range between three years and twenty five years. You may be charged a penalty if you repay your loan earlier than agreed, and you should check each lender’s individual policy with regards to this.

Lenders charge interest on the amount you borrow, which is referred to as the Annual Percentage Rate (APR). The amount you can borrow, the term available and the APR will all depend upon the equity you have in your property, the lender's view of your ability to repay the loan and your personal circumstances, for example any adverse credit. The product with the lowest APR is not necessarily the cheapest and it pays to read the small print.