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.

Secured Lending FAQ

What is secured lending?

Secured Loans > Our Loans > Homeowner Loans > What is secured lending?

What is secured lending?

Secured lending is a form of finance where you use an asset, such as property or a car, as security for the loan. If the loan is not repaid, you could lose the asset to the lender.

Secured lending is usually associated with mortgages or car finance. For both, the loan is either secured on the property or on the car.

Due to the asset being used as security, a lender has greater guarantee of recouping the funds if a customer does not meet the repayments.

  • If you have a poor credit rating, a bad credit secured loan may be an option
  • An asset, such as property will act as security against the loan. Failure to repay the loan may result in losing the asset
  • Secured lending may allow you to borrow larger amounts
  • Secured loans are also known as mortgages or homeowner

The difference between secured and unsecured lending is that you do not need to offer any asset as security with an unsecured personal loan.

As there is no asset offered as security, the interest rates could be higher for unsecured loans.

Failing to repay a secured loan could result in additional charges and will impact your credit rating. This may also result in repossession of your home or in some instances Bankruptcy.

Warning: Late payment can cause you serious money problems. For help, go to moneyhelper.org.uk
Representative 28.96% APRC (Variable) - For a typical loan of £20,950 over 85 months with a variable interest rate of 23.00% per annum, your monthly repayments would be £537.44. Including a Product Fee of £2,095.00 (10% of the loan amount) and a Lending Fee of £714.00, the total amount repayable is £45,682.15. Annual Interest Rates ranging from 11.7% to 46.5% (variable). Maximum 50.00% APRC. The loan must be paid back by your 70th birthday. Read more.

Think carefully before securing debts against your home your home may be repossessed if you do not keep up repayments on your mortgage or any other loan secured against it. If you are thinking of consolidating existing borrowing, you should be aware that you may be extending the terms of the debt and increasing the total amount you repay.
© 2024 Evolution Money | Cookie Policy | Terms & Conditions | Fair Processing Notice
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