Credit > Loans > Loan Types > Secured

Secured Loans

The most common type of secured loan is, of course, a mortgage which we discuss in more detail in our mortgage section. However, secured or "home owner" loans are becoming more common for other uses too.

Secured loans use your home as equity and security for the loan. When lenders are loaning out higher amounts, it gives them something to fall back on if you default on the loan - they can repossess your house. This is probably the most important thing to consider: you could be risking your home if at some point in the future you can no longer make the monthly payments on your loan.

Secured loans are often for higher amounts than personal loans and are generally paid off over a much longer period of time than unsecured personal loans. Spreading the repayment out over a longer period means that in the long run you will probably be paying more interest but the monthly payments can be much more manageable.

Many people are now using such loans to pay off higher interest debt such as credit card balances. Secured loans generally have much lower interest rates than credit cards and paying off the balances over a longer period can make those spiralling credit card bills become much more manageable.

The seemingly ever increasing value of houses and property has tempted many into cashing out some of the value of their homes. This is effectively taking out a loan secured by that property to use on anything from home renovations to luxury holidays. Don't forget, though, that the value of property can fall as well as rise. Borrowing against a high proportion of your property's value can be risky. Consider carefully whether having that extra money to spend now is worth the risk of potentially losing your home in the future.

Secured Loans Compared

	Interest Rate	Repayment Term	Loan Amount	Application
Accepted	Typical 9.9% APR Variable	3 to 25 years	£5,000 to £100,000	Details
Accepted compares over 100 different available loans to offer you the best loan for your circumstances.
Polar Loans	Typical 10.9% APR Variable	5 to 25 years	£3,000 to £75,000	Details
24 Hour Loans	Typical 10.9% APR Variable	Varies by Lender	Varies by Lender	Details
24 Hour Loans compares a wide number of available loans to get you the best quote possible.
Debtbuster Loans	Typical 12.7% APR Variable	3 to 25 years	£3,000 to £100,000	Details
Chase Saunders	Typical 7.3% APR Variable for loans over £25,000 Typical 7.3% APR Variable for loans under £10,000	5 to 25 Years	Varies	Details
Freedom Finance	Typical 10.7% APR Variable	5 to 25 Years	£5,000 to £100,000	Details
Loans Page.co.uk	Typical 11.5% APR Variable	5 to 25 Years	No Limit	Details
ABC Loans	Typical 11.5% APR Variable	5 to 25 Years	No Limit	Details