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A secured loan is a loan that is secured on the borrower’s property.
It can be secured on the property regardless of whether there is already a mortgage on the property. If there is already a mortgage on the property, the secured loan is known as a ‘second charge’ against that property. If there is not already a mortgage then the secured loan is known as the ‘first charge’.
A secured loan can be used for any purpose including financing the building of an extension. The amount that can be borrowed will depend on a number of factors but the amount of the loan is usually below £100,000. Repayment of the loan will usually be repaid monthly over a period of years.
It is generally easier to obtain a secured loan than an unsecured loan because the lender has the benefit of the security provided. This makes secured loans a possibility for people who have difficulty proving their income or who have adverse credit. |
