Secured Loan

A secured loan describes a financial transaction whereby an institution lends money to an individual (or pair of individuals) who own a property (known as an asset), the lender then takes an interest in the property to the value of the loan, in the unfortunate circumstance that the individuals default on the loan or are unable to make the payments the lender can exercise the right to claim back the value of the loan by forcing the individual to sell the asset.

Who is it for?

Due to the nature of the product a secured loan is suitable for the following types of people:

• Those that own their own home and have equity within it
• Those that need to borrow a large amount of money, typically any more than £15,000
• Those that would like to borrow money to set up their own business
• Those who have had credit problems in the past and cannot be granted an unsecured loan
• Those who wish to borrow money over a long period of time, typically a period longer than 10 years