Secured Loans

What Are Secured Loans?

A secured loan is a loan that is secured against a personal asset, usually your home. This type of loan can often work out to be the cheaper option for borrowers of large sums of money because the lender has the security of knowing that if you do not make your payments they get to keep your house.

Secured loans often have lower interest rates than unsecured loans because the risk to the lender is reduced, also you may find that even if you have bad credit you may still be able to get a secured loan providing you have a house to offer as security. Generally secured loans will have longer repayment periods and higher loan amounts than unsecured loans.

It is however always worth remembering the line 'Your home may be at risk if you fail to keep up with repayments', If you fail to make payments you could end up losing your home.