You would be surprise at just how many people don’t know the answer to this question. Especially those who haven’t got their own home or who have not long been a homeowner.
In a nutshell, a secured loan is “secured against your home” – your home acts as security to your lender so that if you don’t pay back the loan they can repossess your house to pay of the outstanding loan amount and any interest you owe.
An unsecured loan (see here) is exactly the opposite – you get a loan that isn’t secured, and you don’t run the risk of losing your home if you are unable to repay what you owe.
Generally secured loans are for larger loan amounts – £25K + or for those who are unable to get a low rate unsecured loan.
Hope that’s cleared that question up!
Any questions let me know.
Sam.
Sam Groundy 