Taking out a loan can ease big payments. Perhaps you would like to consolidate existing loans, make some home improvements or need to make a purchase in the most cost-effective way.

Unsecured loans often have higher repayments and are suitable for short term or lower amounts. Should you need access to higher lending and own your home or have an acceptable tangible asset that can act as a guarantee against non-payment, a secured loan may be a solution.

The risk with a secured loan falls onto the borrower rather than the lender meaning interest rates are often lower than on unsecured loans. However, should you fail to keep up repayments you can lose your home or whichever asset you provide as security.

Secured loans come in many formats and may be known as a home owner loan, home equity loan, second charge mortgage or second mortgage. Some will have arrangement fees or set charges and interest rates may be fixed or changeable. The amount of time you take the loan for can also vary, typically from 1 to 35 years. With secured loans you will need:

  • A credit and affordability check
  • To use your home or an agreed asset as collateral
  • To pay interest each month at an agreed percentage rate
  • To pay the loan back in an agreed time frame

When considering a secured loan, it’s worth chatting through the options with us as we have access to a wide range of products, and can match them to your individual circumstances and be able to explain any fees and options.

Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.