A bank secured loan is one that is secured against your home or other piece of collateral. This kind of loan offers a lower interest rate than one that is unsecured because the lender perceives less risk with this kind of arrangement; if you don't pay they simply take possession of your collateral.

So, although a secured loan is a desirable option in the eyes of the lender, for you it can be a perpetual nightmare, especially if your money management skills are less than perfect. Perhaps this is why loan companies make it a point to warn potential borrowers about putting their home up as collateral.

What is the difference between release equity and re-mortgage?

A bank secured loan can take several forms. Assuming that you already have an existing mortgage against your property, your loan will be designated as either a