Secured Loan

A Secured loans allows you to borrow money using your house as security. This means that the interest rate should be less then what you would pay on a personal loan as the security you are giving to the lender that the amount will be repaid.

People might take out a secured loan if they would like to consolidate their existing debts, are looking for a longer loan period or a large loan amount or have a bad credit history which makes it difficult for them to get a personal loan.

In the case of a loan secured on the home, the secured loan amount can be borrowed is usually limited to how much equity that the borrower has, I.e. the value of the property less the mortgage. Upon request some lenders will allow you to borrow this.