Secured Loans

What is a secured loan?
A secured loan provides the lender with a form of security, in most cases this is a property.

If you own the property or have a mortgage the lender secures the loan against the property. Should you fail to pay the loan; the value of your home will cover the cost when sold. If your home is mortgaged the secured loan is referred to as the second charge and if you own the property outright the loan is referred to as a first charge.
From the outset, the repayment term and the amount to be borrowed is agreed upon by the lender. It is vital, at this point, that you are aware of all the possible charges that could incur.

Failure to pay:
If you do not pay your secured loan, your home will be repossessed and sold to cover the cost of your debt.

How to apply for a secured loan?
It is easy to apply for a secure loan and can be done in a variety of ways: at your local bank or building society; over the phone; online or through a posted application.

Your credit rating is scrutinised and the lender looks through your report for things that flag you as a risk to lend to. Various lenders have different criteria that you must match in order to give a potential borrower a credit score. The score is compiled from your credit rating and the information that you provided on the application. A good score means you will receive better deals on financial products and lower interest rates.