Secured Loans

Secured loans are loans that are given on the strength of an asset, and that almost always means a home. If the borrower defaults on their loan the lender will take the property and sell it to recover their money. If you don't own a home you probably won't be able to get a secured loan.

Loan companies are not in business to repossess homes and would much rather reclaim their money through loan repayment but there is always the possibility that it can happen as a last resort. To cover themselves against sudden loss of work some borrowers take out repayment insurance at an extra cost that will protect them for a period of time.

Because the lender is reducing their risk by having the guarantee of security they are able to offer larger loan amounts than unsecured loans. There are also more lenders in the market willing to lend on secured terms than unsecured.

Most high street banks offer a good range of secured loans and make no stipulation as to what the loan is for. It should be easy to see how much the borrowed amount will eventually cost to pay back and exactly how much the regular repayments are.

As a secured loan applicant you will have a wide choice available to you so it is worth comparing all the offers to see which one will suit your needs. Other features such as repayment holidays, time when you can miss a payment that is then taken later, may also be available.