Secured personal loans are ideal for home owners with a significant amount of equity in their property, who want to borrow reasonably large sums of money, such as £20,000 upwards.
Secured personal loans may be used for any legal purpose, not just to make improvements to the home on which the loan is secured.
One of the most popular uses of a secured personal loan is for secured debt consolidation, which allows an individual to roll all their existing personal loan and credit card debts up into one loan. As secured debt consolidation loans take a second legal charge over the borrower's property behind the main mortgage or homeowner loan, they are considered to be relatively low risk to the lender and therefore the interest rates are usually cheaper than the debts being consolidated.
Secured debt consolidation loans are often taken over a longer period than the original debts and therefore it is possible that the borrower could end up repaying more over the term than they would have done on their original loan debts.
