Secured Loans

A secured loan is available at a much lower interest rate than any other type of loan as your home is used as security on the repayment. Lenders see this type of loan as much less of a financial risk and so are more willing to offer a better rate. Secured loans are only to those available to those who own the property in which they live.

Secured loans are a good way of consolidating your debts to keep of control of your repayments by having one monthly sum to pay. Most secured loans are repayed in monthly installments over a set amount of time, usually between 3 - 25 years.

The amount you pay each month is affected not only by the length of time your repayments are spread across, but also your credit history. A bad credit history could be caused by CCJs, Bankruptcy, Defaults, Mortgage Arrears and others. If you have any of these then you will probably have bad credit history. A lender will be less willing to lend to someone with bad credit, and therefore will give a higher rate.

Even though secured loans are a good way of consolidating your debts, for a lower repayment rate, there are downfalls. If you do not keep up repayments on any loan secured against your home then it may be repossesed as a way of covering the cost of the unpaid repayments.