Are you a homeowner? Yes No Loan amount 5,000 6,000 7,000 8,000 9,000 10,000 11,000 12,000 13,000 14,000 15,000 16,000 17,000 18,000 19,000 20,000 21,000 22,000 23,000 24,000 25,000 26,000 27,000 28,000 29,000 30,000 32,000 34,000 36,000 38,000 40,000 42,000 44,000 46,000 48,000 50,000 55,000 60,000 65,000 70,000 75,000 80,000 85,000 90,000 95,000 100,000 How soon do you need the money? Select ASAP Within Next Month Within Next 3 Months Not Urgent Purpose of loan Select Debt Consolidation Refinancing House Purchase Home Improvement Remortgage - Home Improvement Wedding Car Holiday Business Other Any UNSETTLED defaults or CCJs from the last 3 years? Yes No Uncertain Type of application Individual Joint Title Select Mr Mrs Ms Sir Dr Firstname Surname Employment status Select Employed Unemployed Self-Employed Director Director-Owner Retired Agency Worker Second Applicant: Title Select Mr Mrs Ms Sir Dr Firstname Surname Employment status Select Employed Unemployed Self-Employed Director Director-Owner Retired Agency Worker Email address Daytime phone number Evening phone number Mobile phone number Address Town County Postcode I / We agree to the terms and conditions [Ensure that your details are correct before submitting]

Loans > Secured Loans

Secured loans are often referred to as homeowner loans, as they require the borrower to use their home as collateral against which the loan amount is secured. This type of loan is suited for any purpose, and has greater flexibility than unsecured loans as the borrowing limits are higher and the repayment terms can be over a longer period of time. Being a homeowner puts you in a good position when looking for a loan, and a secured loan is a good option in many cases.

By having the security in place, covering the loaned amount, the risks to the lender of non-payment is far lower when compared to loans that are unsecured. This means that the costs involved for the lender are reduced, as the lower risk exposure reduces the amount of underwriting needed and influences other such factors.

As the lenders face lower costs when dealing with secured loans, they are able to pass on these lesser costs on to you the customer in terms of reduced interest rate charges which means that secured loans are generally cheaper than their unsecured counterparts. This is an important factor when looking to borrow large sums of money, as the higher the amount the greater the influence the APR has, so even a small reduction in this can mean a large difference in the overall cost of the loan.

There are many reasons why someone may require a secured loan, and such a loan can be used for any purpose. Because of their suitability for borrowing high amounts, they are commonly used to provide the money needed for major home improvements such as an extension, loft conversion or fitting of a new kitchen – all things that should add value to the home. This doesn't mean that secured loans are only for people wanting to borrow large sums, they are equally suitable for lower amounts, there will however usually be a lower limit which is higher than the lower limit set for unsecured loans.

The rates of interest charged on secured loans are often favourable when compared to those that do not require any security to be put in place. The reason for this is that the risk to the lender is reduced in terms of non-repayment by the borrower, by having the collateral to back the loaned amount, the lender can be sure that even if the worst comes to the worst, the borrower will have access to sufficient funds to make the repayment.

Secured loans are particularly well suited if you are looking to borrow a large amount, for example to renovate you home, often having borrowing levels limited only to the value of the capital in the property against which they are being secured. For the more expensive endeavours such as carrying out a home extension or loft conversion, the borrowing limits imposed by unsecured loans are simply to low to cover the amounts needed. Secured loans, with their higher limits, are therefore in most cases the best option, the other alternative being remortgaging for equity release. They also provide the lowest interest rates, so if keeping the cost of your loan to the minimum is important to you, then this could be the best option.

As with any form of loan, you should look for one that offers the lowest Annual Percentage Rate (APR) as it is this that determines the cost of the loan. This figure should include all of the standard costs involved in the loan, such as arrangement fees and interest charges, however it wont take into account if there are any early repayment charges, or if there are any penalties for late payments so you should find out these things as well.

No matter what use your secured loan is for, we at loans uk are here to help you to find the very best deal, either through our free loan enquiry service, or through one of our recommended lenders highlighted on this page. Getting a loan has become a very easy and straightforward process, applying online makes this even easier, fill out our enquiry form now to get the loan you need.