Compare Secured Loans

What is a secured loan? 

A secured loan, also known as a homeowner loan, uses your property as security against the amount you are looking to borrow. This can be an option if you need to borrow a large sum of money (£25,000+) and have a poor credit rating but it’s important to understand the risks when opting for this type of loan - if you fail to keep up with the repayments, the lender could seize your property.

What to consider when taking out a secured loan

Before taking out a secured loan, it’s worth considering alternative options where the consequences of failed payments aren’t as severe. If you decide a secured loan is the best way to go however, it’s important to assess how affordable the loan repayments will be. The consequences of not keeping up with repayments can vary, depending on how far behind you are on the repayment and it could impact your credit score, and most importantly, the ownership of your home. 

Not all secured loan offers are the same and your personal circumstances will determine the terms of your loan. Here are some of the factors lenders take into consideration when looking at your loan application: 

• Your income
• Your credit score
• Existing credit commitments
• The amount of equity available in your property 

The interest rate you are offered can vary depending on your credit score and your property could be repossessed if you fail to make your repayments. 

Alternatives to a secured loan

Unsecured personal loans usually offer between £1,000 and £25,000 and is a popular alternative to secured loans. Not only does this option avoid putting your home at risk, it may also come with lower interest rates – if you can limit your borrowing to £15,000 and qualify for the market-leading deals.

However, borrowing more than £15,000 is more difficult – and often more expensive – via an unsecured personal loan.

If you need to borrow a large sum, remortgaging can free up some cash. Mortgage rates for those with a large deposit – or in other words a lot of equity – currently start at less than 2%.

But the downsides include potentially high upfront fees and the fact that remortgaging means paying interest for longer on the whole amount owed.

Finding the right loan

Loans can vary widely depending on the provider and your financial situation, therefore comparing the best loan deals will ensure you get a tailored list of the most suitable options with a just a few clicks.

To compare loans, use the MoneySuperMarket comparison tool and make comparing easy to help you make an informed decision. We’ll ask you a few questions about your financial situation, how much you’re looking to borrow as well as what you’ll be using it for to help us provide you with a range of options to choose from.

All loans and credit cards are subject to status and terms and conditions. Over 18s, UK residents only. Terms and conditions apply. See MoneySuperMarket.com for further information.

MoneySuperMarket is a credit broker - this means we'll show you products offered by lenders. We never take a fee from customers for this booking service. Instead we are usually paid a commission by the lenders - though the size of that payment doesn't affect how we show products to customers.