UK Secured Loans - The Right Choice For You?

By. Joseph Kenny

It's not always easy to get a loan, especially if you have a poor credit rating. County Court Judgements (CCJs), defaults and late payments can blight your credit history, making it almost impossible to get an unsecured loan. But even people with a poor credit rating may be eligible for a secured loan if they own a house. This can provide a sensible option for people with a poor credit rating, outstanding loans or credit card debts who want to manage their debt.

How Secured Loans Work

Secured loans (also called homeowner loans) are loans secured on the value of your house. They provide security for lenders, who have a charge against the house once they have provided the loan. This is a first charge, if the homeowner owns the house outright, or a second charge, if the house is mortgaged. Having a charge against the house means the lender can be sure to get paid even if the borrower defaults.

The good news for borrowers is that this means they can borrow large amounts. While typical unsecured loans tend to be less than