Secured Loans

Secured Loans. These are often called ‘homeowners loans’ or ‘second charge’ loans. At around £5,000 the minimum borrowing is normally a little higher than on ordinary personal loans while at up to £100,000 the maximums are often a lot higher.



The good news if you pick a secured loan is that the interest rate should be lower – the bad news is that the money is secured against your property. This means that if you can’t afford the repayments your lender can force you to sell up to clear the debt. You may have to pay an arrangement fee for a secured loan – they tend to range from £150 to £500 – but you shouldn’t have to pay any mortgage-style valuation or legal fees. You can normally spread the repayments over anything from 5 to 25 years.