A secured loan is a loan that is available only to homeowners, and this is because these loans are secured against the home.
For many homeowners secured loans provide an affordable and effective way of borrowing money for one of a wide range of purposes, such as debt consolidation, home improvements, holidays, weddings, expensive purchases, and more.
Over recent years the popularity of secured loans has increased, and this is because rising house prices have resulted in homeowners enjoying far higher levels of equity, which has given them increased financial leverage.
The benefits of secured loans include longer repayment periods compared to unsecured loans, competitive interest rates, accessibility by those with damaged credit, and increased borrowing power based on equity.
There are also risks to consider when looking at secured loans. The main risk is that the loan is secured against the property, and this means that if you default and repayments you could risk losing your home.
You could also risk falling into negative equity if house prices fall, which is where your home is worth less than the amount of money that you owe on it by way of secured loans and mortgage.
Secured loans are available from a number of lenders, including high street lenders as well as Internet lenders.
You should browse and compare a range of secured loans before you commit in order to get the best deal for your needs.