Secured Loans – Advantages and Disadvantages

You should think carefully before opting for a secured loan.


  • You monthly repayments could be lower than an unsecured loan of a similar value
  • As the loan is secured against your property, lenders could provide you with competitive rates even if you have a less than perfect credit history
  • The loan is ideal for people looking to consolidate their existing unsecured debts or looking for major home improvements


  • Secured loans are generally over a longer term. If you are looking for a short term loan, this option may not be ideal
  • If you do not make repayments, your house is at risk of being repossessed
  • The loan term and interest rates will all depend on equity you have in your property and the lenders view of your personal circumstances