If you're looking to raise finance for major purchases such as a conservatory, an extension or a loft conversion, one method of doing this is to borrow money with security offered against the loan. This effectively guarantees the loan by assigning rights to the security in the event of a loan default. Such a loan backed by collateral is called a secured loan.

One of the most frequently used assets as security in such an arrangement is a house, or that portion of the equity in a house which is not already granted as security for other loans. This type of loan is usually quicker to arrange and more attractive interest rates are available as it is a safer proposition for the lender.

Because of the lesser risk profile of the secured loan it will often be attractive to those with a less than perfect credit history. The secured loan is therefore an option for those with equity tied up in property who are seeking low interest rates or have experienced problems getting an unsecured loan, or for whom an unsecured loan is not otherwise an option. They are also an excellent way to avoid paying a redemption penalty on a current mortgage, with a view to remortgaging both loans together when out of penalty.

Secured loans can usually be arranged without punitive fees like those which a standard remortgage often attracts. For this reason it is often a preferred route for those seeking to release capital from their real estate investments.

The capital which a secured loan releases can usually be used for any purpose including home improvements, buying a car, take a once in a lifetime holiday, and management or consolidation of other debts. By consolidating many short term debts into one larger long term secured loan the monthly payments to service the debt can be substantially reduced making a significant difference to your month to month finances.

Secured Loans are available from high street banks and building societies as well as specialist lenders, and we are able to find you the best possible rate, depending on your specific circumstances.