Secured loans for homeowners from leading lenders in the UK.

Secured loans, also known as personal home loans, second charge loans or homeowner loans are secured on your property by the lender as 'collateral' in the event of a default. This means that the lender has a lower risk of losing any money and can, as a result, offer a secured loan at a lower APR (Annual Percentage Rate) than an unsecured loan, which gives the lender less security. As a homeowner, it is just one of the ways you can use the equity in your property to raise finance in the form of a secured loan.

The advantages of secured loans

A secured loan has several advantages compared to an unsecured loan. Firstly, a secured loan is easier to obtain, even if you have an adverse or bad credit history. Mortgage arrears, payment defaults, even CCJs won't necessarily stop you from getting a secured loan or homeowner loan, although the terms, particularly the interest rate, will reflect your financial history and present circumstances. By the same token, if you have a good credit history, many lenders will offer secured loans of more than the equity in the property, sometimes up to 125%, so if your home hasn't increased in value as much as you had hoped, or a remortgage isn't practical, a secured loan could offer you the best deal.

Moreover, a secured loan can be quick and straightforward to arrange. Because you can keep your existing mortgage in place and you don't need to sell your home or move house and the security is assured, a secured loan can be arranged in just a few weeks and there tend to be fewer up front charges, such as legal and survey fees and mortgage indemnity guarantees, on a secured loan.

What would you use secured loans for?

Another benefit of secured loans is that you can use the money for any purpose you choose. You can consolidate or reschedule other debts to make your repayments more manageable, you can pay off store or credit cards, improve your home or simply use your cash buying power to negotiate the best deals on something like a new car or holiday of a lifetime.

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