Secured Personal Loans UK
To get the best rates, you'll need to provide a guarantee
With secured personal loans UK customers can take advantage of very low interest rates, but there's a risk attached: secured means that if you don't keep up your repayments, you could lose your car or your house. It's essential to be sure that you can afford the repayments.
In the case of secured personal loans UK borrowers can get exceptionally low interest rates, which means that the cost of borrowing will be much lower than with unsecured personal loans. The reason for the price difference is risk: if a loan is secured on your property, such as your house or your car, then the lender can force you to sell your property if you don't keep up the repayments.
With secured personal loans UK lenders will ask you to provide some form of security. In most cases the security will be your house, but in some cases it could be your car or if you're looking at a hire purchase deal, the item you're buying. If you fail to keep up with the repayments the lender will then recover its money by selling your property – so it's essential to make sure you can afford the repayments. Secured personal loans usually have variable interest rates, so if the Bank of England rate rises then your payments will too. Don't overstretch yourself and think seriously about taking out payment protection insurance.
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