A secured loan is a loan that requires the borrower to provide the lender with some form of security. This security will be the borrower's property, regardless of whether it is mortgaged or owned outright as loans secured against property that is already mortgaged are known as second charges. In case of loans secured against a property owned outright with no existing mortgage in place are known as first charges.

Secured home-owner loans are available in varying amounts and for many different purposes, including debt consolidation and the amount available usually ranges from £3,000 to £50,000. The borrowed amount is repaid monthly over a term agreed at the outset, ranging between 3 years and 25 years. Attention, check each lender’s individual policy as you may be charged a penalty if you repay your loan earlier than agreed.

Lenders charge interest on the amount you borrow, which is referred to as the Annual Percentage Rate (APR) and the amount you can borrow, the term available and the APR will all depend upon the equity you have in your property. The APRs quoted by the lender will usually be typical rates so it is advisable to compare the APRs of different loans, before opting for one.

Generally, secured loans are much easier to obtain than unsecured loans as the lender has the added benefit of security providing protection in the event of a customer's inability to repay.

A secured loan can be taken via branch networks, over the telephone, via a written application or online through a lender’s website and not just personally. However loans under £25,000 are regulated and a 7 day consideration period will be given to allow time for you to assess the implications of the credit agreement and to ensure that you are fully aware of all the terms and conditions.

When applying for a secured loan, be aware that your income and financial commitments, past credit history, mortgage arrears, defaults or county court judgments are taken into consideration and under the loop. In most of the cases when an applicant is married, both parties should be named on the application form.

When taking out a secured loan you will be asked to sign a credit agreement, which should be read carefully as the terms are binding as you know well a secured loan is subject to The Consumer Credit Act 1974.

You might also want to take a good look on insurance policies and payment protection schemes offered by the lender. This act covers your monthly repayments in the event of accident, sickness, unemployment and death; however cover does vary between lenders, as does the cost.