A secured loan is a loan secured against your personal assets (house or car). This means that if for any reason you are unable to meet your loan repayments, these assets could be seized. Because of the assurance this offers your lender, secured loans tend to be offered at lower APR than unsecured loans. The risk to you does however mean that secured loans should not be entered into lightly. You need to be fully confident of your ability to meet monthly repayments.
The size of your loan
Secured loans tend to be for large sums, ranging from a few thousand pounds to £100,000. The size of loan you are able to procure will depend on your individual situation and the criteria applied by different lenders. Factors taken into consideration will include the value of your secured assets (home, car) and your income.
The advantages of a secured loan
Because secured loans are secured against key assets, lenders are more confident to lend larger sums of money (up to £100,000) over longer periods of payback (anything up to 25 years). They are also more willing to lend to applicants with poorer credit histories who may not have access to unsecured loans. Applicants who fall into this category include those with County Court Judgements against them, the self-employed and those who have recently started a new job.
Finding the secured loan that’s best for you
There are so many lenders advertising secured loans that it can be bewildering searching for the right loan for your individual circumstances. At FreePriceCompare we do the hard work for you.
Use our loan comparison tool to find the loan that’s best for you. Enter a few details about yourself and the amount of money you’re looking to borrow and the comparison tool will highlight the best loans available for your individual circumstances. As a next step, you may be referred to a broker who will look in greater detail at your circumstances and requirements.
Our service is confidential and all correspondence is encrypted to ensure privacy and security.
Now that you’re fully informed and think that a secured loan might be right for you, use our loans comparison tool to get the process underway.