A secured loan is a personal loan which is generally offered to home owners. In a typical secured loan, the home is used as collateral against the loan, meaning that should you be unable to maintain the loan repayments, your home will be at risk.

A secured loan is a loan made with an asset, often your home, used as security against default on repayments. When you apply for a loan from a lender they look to see if you have any security that you can offer that will make the risk of lending you money less of an issue.

Secured loans are where you agree to offer the lender security over your home. This means that the lender has the right to take ownership of this asset if you fail to make the loan repayments that are due under your agreement.

This security will generally be your home even if you still have a mortgage on the property. This security basically makes a lender feel better about your ability to repay your loan. You put your security up as a guarantee to the lender so that if you fail to make repayments they have a secured fall-back and can get their money back.

The fact that you have this security to offer a lender minimises the risk they take lending you the cash. They know they have a guarantee of getting their money back whatever happens so you'll get the best interest rates available in the market for a secured loan.

Before a lender will make a loan offer they are likely to consider a number of factors including your gross household income, past credit history and any adverse instances of mortgage arrears, defaults and county court judgements.

Secured loans are available today from a variety of lenders at a variety of interest rates. In taking out a secured loan you are effectively releasing capital that would otherwise have remained tied up in your property.

The majority of homeowners who take out loans will choose a secured loan option simply because it will be cheaper than unsecured loans.

Secured loans vary from lender to lender. Normally, though, they will range from just