As the name suggests, a secured loan is a loan that is offered on the basis that you provide some collateral as security. Most commonly, these loans are secured against your property – they effectively become a second mortgage that you make repayments against on a monthly basis, in the same way you do with your traditional mortgage.

As the loan is secured against your property, secured loans can often be for much larger sums than typical unsecured loans. As long as there is sufficient equity in your property to repay the loan if required, most lenders will be happy to lend you whatever amount you need.

There can be any number of situations where a secured loan could be the best finance option.

• Secured Loans for home improvements – improving your home can be a great way to add value to your property, and a secured loan could provide you with the funds you need to renovate your kitchen, bathroom or build that extension.
• Secured Loans for debt consolidation – with interest rates that can be very competitive when compared to credit cards and unsecured loans, a secured loan could be a great way to consolidate your other debts and leave yourself with a single, more manageable monthly payment.
• Secured Loans for a 2nd property – if you’re thinking about purchasing a second property, a secured loan could be a great way to get the deposit you will need and put you in a strong position to get a great deal on your new mortgage.
• Secured Loans for big expenses – when big expenses come along, such as a new car, a wedding or a holiday of a lifetime, a secured loan could be a great way to provide the money you’ll need to pay for it.
• Secured Loans to help your business – securing a loan on your property could be the best way to generate the capital you need to help grow your business or give your startup the funds it needs to take off.

Unlike a car loan, for example, a secured loan can be used for practically any purpose. Whatever the situation, if you think the best option is going to be a secured loan it’s important to make sure you get the best deal and the lowest interest rate.