With a secured loan, money that you borrow is secured against all or some of your assets, specifically an item of property that you can prove that you own as insurance for lender against defaults or non-payment of instalments.

A secured loan is secured against your home to act as security to Lender for money you have borrowed. A secured loan is often referred to as a homeowner loan. Secured loans are an ideal solution for homeowners who have recently been refused a personal loan or for home owners wanting to borrow a larger loan amount.

It is a bank loan designed exclusively for home owners which uses net value of their property as security for loan. As a result of inflation and part repayment of mortgages many home owners have a property which is worth far more than mortgage they owe on it. A secured loan enables you to make use of this asset by providing security for your loan, whether you own a house, flat, bungalow or cottage.

Being a home owner affords you better status in eyes of lenders. This makes it possible for home owners to obtain excellent interest rates. A secured loan usually has a much lower interest rate than an unsecured loan. You do not even have to have any equity in your property, some lenders will lend up to 125% of value of property.

A secured loan is a convenient way of borrowing a larger sum of money and repaying it over a longer period of time than is usually possible with an unsecured personal loan. In simple terms a “secured” loan gives security to lender, not to you, borrower. It is any loan which requires borrower to provide lender with some form of security other than just a promise to pay.

A secured 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 you are effectively using your property to guarantee loan.

Secured loans have a range of distinct benefits over other types of borrowing. Because of lower risk to loan provider, they pass on reduced interest rates to property owners. However, they've got more to offer than just attractive Annual Percentage Rates (APR).

Secured loans come with all sorts of flexible repayment terms that will make it easier for you to repay, so it's important to read small print. Clauses to keep an eye out for include: ‘payment holidays' whereby you can halt repayments for an agreed period of time, and favourable redemption charges - so you won't be penalised if you want to pay loan back early.