With a secured consolidation loan, your debt is restructured into one low, affordable amount that you agree to pay. The new loan is secured against your assets, normally any property that you own. Secured Loans work on the principle that the borrower gives the lender security against the loan.

This security is usually a property belonging to the borrower and will be in the form of a charge against the property. If the property is already subject to a charge, because it is already mortgaged, the security will take the form of a second charge, which can be claimed when the first charge has been satisfied. 


Secured Loans are often easier to achieve than unsecured loans because of the extra security a property charge gives to the lender. This extra security has the added advantage of allowing people with adverse credit or people who are self employed the opportunity to borrow money when an unsecured loan is unobtainable.

 Secured Loans do not normally come with strings attached and can usually be used for debt consolidation purposes. They can be for varying amounts, from as little as £3000 up to £50000. The term for repayment is variable and can be set from between 3 years and 25 years, but penalty charges can sometimes apply if you repay your loan early. Monthly repayments will vary depending on the amount borrowed, the term of the loan and the interest rate charged. Personal circumstances such as your credit worthiness will influence the lender and determine how much they are prepared to lend and over what time period. It is advisable to always compare two or three different providers to be sure that the loan you are offered is the most competitive available.