The application process is a lot longer with personal secured loans than with unsecured loans, due to fact that your loan provider will need to value your home.

The primary advantages of a personal secured loan are that:

They offer lower interest rates. Because loan is secured and lender is guaranteed to recover their money in almost any circumstance APR (the interest rate) tends to be less than with an unsecured loan.

The circumstances in which one is able to secure a loan on property are more dependent upon equity in property rather than past credit history and hence individuals with adverse credit histories (such as County Court Judgements and credit card defaults) are not excluded from secured lending.

A personal secured loan represents an efficient debt management tool because it is possible to spread payments to a term of up to 25 years, it is therefore possible to consolidate any existing borrowing and reduce monthly outgoings to such an extent that considerable extra income is made available to household budget.

The majority of personal secured loans can be arranged without fees therefore personal secured loan often represents a cheaper lending option than a remortgage due to fees usually associated with remortgage product.

They are easier to be approved for. In a typical personal secured loan, home is used as collateral against loan, meaning that should you be unable to maintain loan repayments, your home will be at risk.

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John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the www.directonlineloans.co.uk website.

Personal secured loans tend to have a lower interest rate compared to unsecured personal loans. This is because there is less risk involved for lender because loan is secured on your property.

One of advantages of personal secured loans is that they are generally straightforward and therefore quick to arrange, often within a few weeks. As lender is securing loan against your property as collateral, it means you don't have to sell up or move house.

Even if you have a bad credit history such as CCJ's, mortgage arrears or payment defaults, you can obtain a personal secured loan although rate of interest you pay will be higher than if you had an unblemished credit history.

Personal secured loans can be used for a variety of reasons, including:

home improvements - a loan is taken out to carry out home improvements, with aim of adding to overall value of home.

car finance - a loan is taken out to finance purchase of a new car, as terms of a personal secured loan are more attractive than other car finance options.

mortgage arrears - a loan is taken out to cover arrears in mortgage repayments, or to convert current mortgage repayments into a longer-term, more manageable loan repayment.

debt consolidation - a loan is taken out to pay off existing debt, thus consolidating debt into one manageable, longer-term loan repayment.

The danger with a personal secured loan is if you are unable to keep up repayments on your loan your home or asset which secured loan could be at risk. It is important to bear in mind that your property is at risk if you fail to keep up personal secured loan repayments.

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