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Debt Restructure

Putting you back in control

Secured loans

What is a secured loan?

There are two types of loans, secured and unsecured. Most people have previously used a form of unsecured borrowing, for example a personal loan, car loan or credit card. However, a secured loan is a loan whereby the lender secures the loan against your assets and uses these as collateral for the loan. This is usually the money or equity available in your property.

The loan is therefore secured against this collateral and in the event that the borrower defaults on payments, the lender can take possession of the asset. The lender can then use this collateral to satisfy the debt by selling the asset to repay the debt.

A secured loan can have a lower rate of interest compared to an unsecured loan. This is because the risk to the lender is reduced when the debt is secured against your assets (e.g. your property) so they are willing to charge lower interest rates over the term of the loan.

It is also more likely for people to borrow larger amounts and repay them over a longer term, with a secured loan. This may be an amount from £5,000 to £100,000 with a secured loan and usually you can choose to repay over a period of up to 25 years.

How could I use a secured loan?

Secured loans are often for amounts in excess of £5,000, so they can be useful if you're planning a major home improvement project such as a loft conversion, extension, new kitchen or bathroom.

It is also possible to use a secured loan to consolidate existing debts. The secured loan is taken out in order to settle outstanding payments on credit cards, store cards and other loans. This is usually done so that the monthly repayment is reduced and the debt becomes more manageable.

How can I apply for a secured loan?

It is possible to apply for a secured loan directly to a specialist loan company or bank. Alternatively, a loan broker will compare secured loans and help you decide on the best loan for you. At Promise Loans, we may also be able to assist. If you would like to speak to one of our team in order to help you further, just fill in an online enquiry form and we'll call you right back - or call us now on 01902 585 016.

Promise Loans can put you back in control

Customer feedback
"Throughout the whole case you have been brilliant. You were polite and courteous and dealt with our case swiftly Miss Peck,Bradford
"Your team did everything they said they would. It was a pleasure dealing with them and their wonderful staff Dr Patel,Wembley