If you're considering borrowing a large amount of money and own your home, a secured loan could be a suitable option. But what exactly is a secured loan, how does it work in the UK, and is it the right choice for your financial needs?
At Friends Capital Ltd, we specialise in helping clients across the UK find the most suitable secured loan products for their circumstances. Whether you need to consolidate debt, fund home improvements, or manage a major life expense, our advisers are here to guide you through every step.
A secured loan is a type of loan that is backed by an asset — typically your home. This means the lender has the legal right to repossess your property if you fail to repay the loan.
Because the loan is secured against your property, lenders are generally willing to offer:
In the UK, secured loans are often referred to as second charge mortgages, as they sit behind your existing mortgage. You continue to make your usual mortgage repayments, while also repaying the secured loan separately.
Common reasons for taking out a secured loan include:
Secured loans are available to homeowners who have built up equity in their property. The more equity you have, the more you may be able to borrow.
Both secured loans and remortgaging involve borrowing against your home, but they work differently.
A secured loan may be more suitable if:
To be eligible for a secured loan, you typically need to:
Even if you’ve had credit issues in the past, you may still be eligible, as lenders take the security of your home into account.
As with any financial product, secured loans come with risks:
That’s why it’s vital to seek advice from a qualified mortgage and loan adviser before proceeding.
A secured loan is a loan that is secured against your property. It allows you to borrow larger amounts, usually at lower interest rates.
Yes, many lenders in the UK offer secured loans to borrowers with adverse credit, as the property provides security for the loan.
Loan amounts typically range from £10,000 to £500,000, depending on your income, credit history, and available equity.
Generally, yes. Because they are less risky for the lender, interest rates on secured loans are often lower than those on unsecured loans.
It usually takes between 2 to 4 weeks from application to completion, depending on the lender and your personal circumstances.
A secured loan can be a flexible, powerful borrowing option — but it's not the right solution for everyone. At Friends Capital Ltd, our expert advisers will take time to understand your situation and guide you towards the most suitable product for your needs.
Whether you're looking to consolidate debts, improve your home, or release equity, we’ll explain your options clearly and help you make an informed decision.
Get in touch with our mortgage and loan experts today to find out whether a secured loan is the right fit for you — and how to move forward with confidence.