Secured loans can be a sensible way to borrow for certain expensive items, such as home improvements or debt consolidation.

This type of loan is usually provided with a lower interest rate than an unsecured loan because you will have secured your property against it. They are normally quicker to arrange because lender has some security to offset against loan should you default on repayments.

A secured loan enables homeowners to borrow capital and offset risk against value of their property. This means that anyone taking out a secured loan is effectively using their property to guarantee loan. If borrower fails with repayments, there could be a possibility their home is at risk.

Because loan is secured against your home, interest rate should be cheaper than an unsecured loan and you may be able to borrow more. One of major benefits of a secured loan is that interest rate charged by lender tends to be significantly lower than that of an unsecured loan.

Student loans are part of government's financial support package for degree only students embarking on a course of higher education. For most students, a student loan is their largest single source of income. So unless you have very generous parents, you will need to apply.

Regardless of where you are studying, if you are from England and Wales you will apply to your Local Education Authority using an HE1 form. They will then calculate how much you're entitled to receiving – as well as working out whether you need to pay tuition fees.

They will then send you back a form that you need to forward to Student Loans Company (the government organisation that administers your student loan) who will process your application. This usually takes a month, so make sure you get paperwork done well in advance of start of term.