The main benefit of a secured loan is that, typically, they offer a cheaper interest rate than unsecured loans. The cheaper interest rate reflects reduced risk involved for a loan company in providing a secured loan. Approval for secured loans tends to be easier than for unsecured loans.

Secured loans can be used for any purpose and are one of ways that you can use equity in your home to raise money for things you've always dreamed of - like that long overdue holiday, home improvements, or buying a new car. You can also use a secured loan to consolidate your debts into one manageable monthly repayment.

It does not matter what type of lender is providing loan. Whether it is a high street bank, building society or finance company result is same. If you borrow money using a mortgage as security you are agreeing that lender can claim mortgaged property if you fail to keep to agreement.

If you agree to a secured loan on your home, you should remember that, although property remains in your possession, it can be repossessed by lender if loan and interest are not paid according to agreed terms. The lender will then sell property in order to recover money you borrowed plus additional costs incurred in recovering money – this is same with all lending companies.

Low cost insurance can be arranged to cover your repayments. Most people find that it is a small price to pay for peace of mind it gives. Loan insurance policies cover your personal loan if you are unable to work because of illness, accident or disability, or you become unemployed.

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With a Debt Consolidation Loan you can borrow from £5,000 to £75,000. Debt Consolidation Loans secured on property can be repaid over a period of between 5 years and 25 years .

Debt Consolidation Loan rates are variable, depending on status. Monthly repayments will depend on amount borrowed and term.

Remember that this Debt Consolidation loan is to pay of existing debts and that all regular bills will continue to appear and will need to be constantly cleared too to avoid a similar situation in future. Hence you need to take complete stock of your financial situation whereby you need to have money to pay off monthly bills, mortgage repayment and other unavoidable expenses.

Should you be unable to make your loan repayments, lender has security collateral in your home, therefore continuous failure to pay back loan repayments could result in lender legally taking possession of your house.

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