A secured loan is a loan secured against one or more of your assets, usually your home. It is also

referred to as a second charge, the first charge being your original mortgage.

The secured loan can be used for any purpose such as debt consolidation, home improvements, a car, a holiday etc.

A secured loan is much cheaper than an unsecured loan. However the interest rate is usually slightly higher than your first mortgage because the lender for the secured loan perceives a higher risk. This is due to the fact that if your home were to be repossessed the first mortgage would take precedent over the secured loan.

 The advantages of a secured loan are that they are quick to organise with less detail required in the application than a traditional mortgage. Also a valuation and legal work may not be required. 

Furthermore, if you are in a position where you need to raise funds but a remortgage is unsuitable (because you are in a penalty period with your existing mortgage lender for example) then a secured loan could be the answer.                                        

Think carefully before securing other debts against your home