Secured loans allow homeowners to borrow a large sum of money, usually at better rates than an unsecured option. They are sometimes referred to as ‘homeowner loans’ because most require you to own your home in order to qualify.
If you have equity in the home that you own and occupy and want to borrow upwards of £15,000 then this kind of borrowing could be right for you. The amount you borrow, the term and interest rate, all depend upon the equity you have in your property, your credit history and your personal circumstances.
Consider the future
Never take such deals lightly – if you default on your payments you could lose your home.
By securing the loan, you show the lender they will be repaid, even if you struggle to find the money. That obviously gives the lender better security and peace of mind, consequently, you get benefits that aren’t available to unsecured borrowers, for example, a larger amount of borrowing, a reduced interest rate for your repayments, or even a longer borrowing period.
Secured loans are most commonly repaid over a period of between 5 and 25 years, although even longer terms may be available. They’re often easier to qualify for than personal loans, because the lender knows they can always get their money back.Talk to us about your loan options