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Secured Loans

A secured loan is when the loan is secured against an asset, typically your home.

Alphabet Money can provide you with information to decide if a Secured Loan is the right choice for you.

It doesn’t necessarily matter if you don’t own your home outright to secure the loan but you will need enough equity (in basic terms equity is the difference between the market value of your home and the money you owe on the mortgage) in your property to cover the amount borrowed. The property or the equity in the property will act as the security for the lender in the event that you are not able to continue making the payments. Please also ready about our Payment Protection Insurance solution click here that might protect you from the risk of note being able to make your monthly repayments. Remember to allow yourself time to arrange a secured loan as your home may need to be valued before the loan can be agreed.
 
Typically you will find that the APR (annual percentage rate) is lower on a secured loan compared to an unsecured loan because the lender should have less risk if they have secured the loan against your asset (your home or the equity in your home) rather than an UnSecured Loans where the lender has no security against an asset.

If you miss any payments on a Secured Loan there is a risk of losing your home. Secured Loans are most common when the requirement is to borrow more than £7,000 - £8,000 and over a longer period of time (often up to 25 years).