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Secured loans and how they work

What is a secured loan and how does it work?

Secured Loans > Our Loans > Secured Loans > What is a secured loan and how does it work?

What is a Secured Loan? How does it work? Here’s what you need to know.

With so many different borrowing options available, it’s easy to become overwhelmed when looking for the right type of loan for you. What is a secured loan and how does it work? Here’s everything you need to know about our secured homeowner loans from Evolution Money.

What is a Secured Loan?

You may have heard about Secured Loans, but what exactly are they? Also known as homeowner loans, or a second charge loan.  They are only available to homeowners with a mortgage. 

Unlike unsecured or personal loans, the loan amount you borrow with a homeowner loan is ‘secured’ against your property as a form of security for the lender. By agreeing to a Secured Loan, you reduce the level of risk involved for the lender as failure to make your repayments could result in your property being repossessed. 

This reduced level of risk for the lender can often mean it’s possible to borrow a larger amount of money with a Secured Loan than would be possible with an unsecured loan. They can also be a better borrowing option for people who have a poor credit score as the success of your application is not determined by your credit score alone.

How Does a Secured Loan work? 

Secured Loans work by allowing the borrower to receive a loan when using their home as collateral. This is then paid back to the lender through regular repayments. 

Factors that can affect the amount you’re able to borrow or will be expected to repay could  include interest rates, loan limits based on the amount of equity left in your property, the loan-to-value ratio (LTV), how much you can afford to repay as well as other loan terms.

At Evolution Money, we offer Secured Loans ranging from £5,000 to £50,000 with competitive interest rates and lending terms of up to 20 years.

What Can a Secured Loan be used for? 

A Secured Loan can be used for many things; whether you’re planning to add value to your property, renovate your home, build an extension or fit a brand-new bathroom, then a Secured Loan may be the right option for you. 

These types of loans can also be ideal for funding special occasions such as weddings or you could even use a Secured Loan to finance larger purchases such as a car. 

Even with bad credit, you may still be eligible for a Secured Loan with Evolution Money. In fact, you may decide to use the loan amount to consolidate any debts and instead make a single affordable monthly payment.  

Are you eligible for a Secured Loan?

To apply for a Secured Loan you must own your own home. 

At Evolution Money, we ask that all of our Secured Loan customers meet the following criteria and be: 

  • A Homeowner 
  • Aged 18 or over 
  • Currently living in the UK 
  • Currently Employed 

We may also be able to help if you’ve been self-employed for at least 12 months.  Unlike some other lenders, we don’t make a decision based solely on your equity on your mortgage or your credit score. Instead, we work with you to understand your personal circumstances. We’ll carry out an affordability check to ensure you’re able to make the repayments from your regular income.  

The Secured Loan Process at Evolution Money 

We do things differently at Evolution Money and are proud to be awarded the Feefo Platinum Trusted Service Award Our Secured Loans process is clear and straightforward, and we’ll work to find a suitable loan for your circumstances. 

To apply for one of our Secured Loans, call 0161 814 9158. Or, fill out our simple online application form and we’ll call you back. 

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

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Our Address

Evolution Money,
9 Portland Street,
Manchester,
M1 3BE


Registered Company Number: 06987852

Contact by Phone

General Enquiries:
0161 814 9158

Complaints:
0161 814 9165

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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 9 Portland Street, Manchester, M1 3BE. Authorised and regulated by the Financial Conduct Authority, firm reference number 708324.


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