Secured Loans

A secured loan is just what it says it is. It is a loan that has the repayments secured against property of yours. The security is usually your house, and can also be your car for a secured car loan.

Secured loans are usually for amounts that are over and above the amounts that are offered for personal loans. The most well-recognised secured loans are a house mortgage. Secured loans are a very common form of loans for large purchases.

Secured loans can be an attractive option for borrowers thanks to their lower monthly repayments and longer repayment times. This lets you spread your repayments over a longer time to reduce your monthly spending.

Some secured loans allow what it called a "repayment holiday". This is when you can put your repayments on hold for a short time if you need to. There are also other options available from most lenders including weekly or fortnightly payments which pay off the loans faster then monthly repayments, redraw facilities on the equity of the loan, and more.

The down-side to a secured loan is that the payments must be kept up. If repayments are not kept on schedule, you will run the risk of the bank foreclosing on the secured property. This means that it is possible to loose your house if you can't keep the payments up.