We are currently experiencing technical difficulties with our telephone system.
We apologise for any inconvenience and are working to resolve this as soon as possible.
Evolution Money
Customer Enquiries 0161 814 9158
This website uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Continue

Secured versus personal loans: de-mystified

Secured Loans versus Personal Loans

Secured Loans > Our Loans > Homeowner Loans > Secured versus Personal loans

Choosing between personal and secured loans can be a confusing process. We’re often asked about the differences between each product, and how to decide which one is right for you.
Always remember that choosing a loan option that is not best suited to your personal circumstances could have negative impact on your financial wellbeing.
Once the differences between these loans are clear, it’s far easier to make the right borrowing decision.

What is a personal loan?

Personal loans typically range between £5,000–£50,000 and are not backed by any assets or capital, such as property or vehicle. That’s why they are also known as unsecured loans.

Acquiring this type of funding can be relatively easy to obtain for those with a reasonable credit score. Repayment terms for a personal loan can be both at a fixed and variable rate of interest, and can be paid over a flexible term, usually 1 – 7 years, depending on the amount borrowed. Failure to make these repayments can incur additional charges.

Before deciding on a personal loan, it is first necessary to weigh up your financial situation, and estimate how much you can realistically afford to repay. Never let the desire or urge to splurge on costly purchases cloud your judgement.

What is a secured loan?

Secured loans are credit agreements only available to homeowners or mortgage holders.
The amount available to borrow is significantly higher than personal loans (typically up to £250,000) as it is backed or ‘secured’ by the value of your property. That’s why they are also known as second mortgages.

A secured loan may be your best option for several reasons…

  • Available to those with a poor credit rating
  • Longer repayment period (can range between 1–25 years)
  • Often used to consolidate existing debt into a single monthly repayment
  • Fund major home improvements or significant purchases

The repayment period for secured loans is generally much longer than personal loans, which has a few implications for the borrower. Opting for a longer repayment period means the cost repayable per month can be lower than a personal loan.

You might require a secured loan to cover the cost of…

  • Home improvements
  • New car
  • Special occasions (e.g. wedding or holiday)
  • Debt consolidation

You can use our nifty secured loan calculator as a guide to work out the amount you wish to borrow and a repayment timeline that works for you.
Always be aware that continual failure to repay loan installments could mean your property is at risk of repossession. Furthermore, if you are thinking of consolidating existing lines of credit, this might end up extending the terms of debt and the total amount due. This is the main legal risk you take with a secured loan.

Which option is right for you?

Before deciding on a loan option, make sure you fully understand the differences between personal and secured loans, and how each option serves your individual circumstances. If you have a satisfactory credit score and are looking to obtain a loan to cover the cost of a new car, holiday or special occasion – a personal loan might be your best option. If you’re a homeowner, or have a poor credit history, a secured loan might be right for you.

personal versus secured loans
Warning: Late payment can cause you serious money problems. For help, go to moneyadviceservice.org.uk

How our customers rate us

We’re proud of the high standard of our customer service and believe that each of our customers should be treated as an individual.
Evolution Money 96 out of 100, based on 178 reviews over the past year. 178 user reviews. Read our reviews

Members of the The Finance & Leasing Association

FLA logoThe Finance & Leasing Association is the leading trade body for the motor finance, asset finance and consumer credit industries in the UK.


Feeling social? Check out our social pages!

Tweet us on Twitter
Like us on Facebook
Add us on Google+

Our Address

Evolution Money,
9 Portland Street,
M1 3BE

Registered Company Number: 06987852

Contact by Phone

General Enquiries:
0161 814 9158

0161 814 9165

Contact by Email

Evolution Money Limited is a licensed credit broker and service provider to Evolution Lending Limited. If your application doesn’t meet the underwriting requirements of Evolution Lending Limited we may pass your information to other lenders and brokers. Evolution Money Limited is a company registered in England & Wales, registration number 06987852 and registered at 8 St John Street, Manchester, M3 4DU. Authorised and regulated by the Financial Conduct Authority, firm reference number 708324.

© 2019 Evolution Money | Cookies | Complaints Policy | Breaking Down Our Loans | Terms & Conditions | Fair Processing Notice
Get Quote
I want to borrow £
You will need to read and agree to our Fair Processing Notice before continuing. *
You will receive a call today to continue with your application.
Thank you for taking the time to fill in our online enquiry form. Unfortunately in this instance we won't be able to help as being a homeowner is one of our primary requirements.

Fair Processing Notice

Who we are:

Evolution Money Ltd, Progressive Money Ltd and Evolution Lending Ltd are all wholly owned subsidiaries of Darwin Loan Solutions ('the Group').

We take your privacy seriously and will only use your personal information to

A) Discuss loan offers and provide you with the products and services you have requested.
B) If you take out a loan with us and become our customer, it will also be used to manage your loan.

We'll keep your details for up to 12 months to enable us to help you with your loan application. If you don't take out a loan with us, we will delete your enquiry details unless regulations say we must keep them for longer.

This won't change any marketing preferences you've already chosen.

How we control and process your data:

Our companies hold and process your personal data in accordance with Data Protection law in the UK. We are committed to maintaining the privacy and protection of all personal data collected in connection with our broker and loan services. We may share your information with credit reference agencies and other companies for use in credit decisions, for fraud prevention and for debt collection purposes.


Marketing Contact preferences - putting you in control:

We would love to tell you from time to time about offers and special deals on loans, insurance products and utility services which may save you money.

If you're happy to be contacted about these, please click the boxes to tell us how you want us to get in touch with you.

You can change how we contact you at any time by simply getting in touch with us on FPNandmarketing@darwinloansolutions.co.uk or 0161 814 9210.

Your choices do not affect your enquiry/loan application in any way.


Marketing Contact preferences - Our partners:

We would love to tell you from time to time about special offers and deals from our carefully selected partners.

If you're happy to be contacted by them please click the boxes to tell us how our partners can get in touch with you.

You can change how we contact you at any time by simply getting in touch with us on FPNandmarketing@darwinloansolutions.co.uk or 0161 814 9210.

Your choices do not affect your enquiry/loan application in any way.


Please read the full details of our Fair Processing Notice including Credit Reference Agency Information Notice (CRAIN) Click here to see a copy of the CRAIN.

If you agree to our Fair Processing Notice and want to continue to the next stage - click Agree.


Start Here
Please wait

Please wait

Don't leave just yet!

Evolution Money are a multi Award Winning UK finance company with thousands of happy customers!

Award Winning

Our friendly loan advisors can let you know if you're eligible for a loan without affecting your credit score. Why not give us a call today!

Freephone 0800 144 8188

Back to Evolution