What is a secured loan?

A secured loan is money that you borrow that's tied to a valuable asset, such as your house or another property. When you take out a secured loan, you put up your home as collateral. This means there's less risk involved for your lender. As a result, you typically get access to lower interest rates and higher borrowing limits.

How do secured loans work?

Secured lending works in much the same way as other types of loans:

  1. You borrow an amount of money and agree to pay it back over a certain period of time.
  2. This is usually done via monthly instalments, and there's interest attached.
  3. The interest means you end up paying back more than you borrowed in the first place.

If you're confident in making repayments and looking for flexible rates and terms, we can help. We can compare around 600 secured loan products, so we're well-placed to find an option that suits your needs.

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What to consider before taking out a secured loan.

“Like any form of borrowing, secured loans have pros and cons. The key factor here is that the loan is secured against your property, so lenders are often more willing to offer higher loan amounts than with an unsecured loan.”

“That said, it’s vital to be sure you can afford the repayments. If you fall behind on your payments, your home may be at risk of repossession.”

Lisa Muscroft, Head of Loans Broking at Norton Finance

Lisa Muscroft

Head of Loans Broking at Norton Finance

Specialist in secured lending and complex cases, with extensive experience supporting customers across complex borrowing scenarios.

Last edited: 02.06.2026

Advantages and disadvantages of a secured loan

Before you take out a secured loan, it’s important to do your research. Borrowing money can give you access to the funds you need to pay off debts or make a big purchase. But, it means you need to be confident you can make monthly repayments towards paying off the loan. Before you take out a secured loan, it’s important to do your research. Borrowing money can give you access to the funds you need to pay off debts or make a big purchase. But, it means you need to be confident you can make monthly repayments towards paying off the loan.

Apply for a secured loan
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Difference between secured and unsecured loans

Not every situation requires the same kind of loan. There are two types of loans available, each with unique features to suit different circumstances.

Secured Loans

A secured loan is where you borrow money secured against an asset –usually your home. If you don’t keep up with your repayments, you may lose the asset you used to secure the loan.

Apply for a loan Borrow up to £500,000

Unsecured Loans

With an unsecured loan, sometimes known as a personal loan, the money you can borrow is determined by your credit score. It won’t be secured to any of your assets in the way a secured loan is.

Apply for a loan Borrow up to £25,000
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Secured loans vs. remortgage or equity release

Homeowners looking to raise funds might consider a remortgage or equity release. These options could offer lower interest rates, especially if you're no longer tied to a fixed-rate deal or are on your lender’s standard variable rate (SVR). However, they’re not always suitable depending on your circumstances and a secured loan may be a more practical alternative in some cases.

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What can I use a secured loan for?

You can use personal secured loans for any purpose, but your lender might want to know what your intentions are. People tend to apply with a specific, large project in mind, such as:

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Home improvements

Borrow to raise the funds for the materials you need to redecorate, or build an extension.

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Purchasing a car

Car purchase loans can be cheaper than dealership finance plans, with rates available to suit your requirements.

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Debt consolidation

Save on fees and hassle by clearing other existing debts, in favour of a single monthly repayment, with a debt consolidation loan.

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Starting a business

Give your start-up a boost or grow your customer base. Business loans can help give you the edge over your competitors.

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Applying for a secured loan

Before applying for a secured loan, it’s worth understanding what lenders look for. These factors affect how much you can borrow and whether your application is approved.

Lenders will assess your income and outgoings to ensure you can afford the monthly repayments. They may also ask about any existing debts.

Your loan-to-value (LTV) ratio is important too. The more equity you have in your home, the less risk for the lender — which can lead to better rates and higher borrowing amounts.

You don’t need perfect credit, but lenders will check your history, including any missed payments or CCJs. A stronger credit profile could help you access more competitive deals.

It’s also helpful to have a clear loan purpose in mind, as some lenders have restrictions on what their secured loans can be used for.

Every lender has their own criteria, including your income, credit score, equity, and loan amount. For more details, visit our guide to loan eligibility.

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How our loans work

Applying for a loan with Norton Finance is easy and hassle-free. Simply:

At Norton Finance, we can help find a loan that suits your needs as compare hundreds of loan options, not just one like a bank or building society.

You could borrow between £10,000 and £500,000, over 1 to 30 years, depending on what works best for you. Unsure of how much you can afford to borrow? Try our secured loan calculator.

You can get a decision in principle within 24 hours and if approved, the money is usually paid within 14 days.

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Get a loan in 3 simple steps

1

Click apply for a loan to start your journey

2

Fill out our online form for your personalised rates

3

Get the loan that best suits your circumstances

Apply for a secured loan
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Frequently asked questions

FAQ’s

Credit history isn’t everything, but it is important. With loans secured on property, your credit score isn’t the only factor considered. Keep in mind that a better credit score might mean a lower interest rate.

You can borrow from £10,000 to £500,000 through Norton Finance and our trusted panel of loan lenders.

Choose anything from one to 30 years, to ensure you are comfortable as possible with your repayments.

Interest rates will vary depending on your financial history and current circumstances. Homeowner rates start at 5.69%.

We compare loans rather than only offer our products. We receive a commission from the lender upon completion of a loan. We may also charge a broker fee of up to 12.5% of the loan amount borrowed, capped at £4,950. We do not charge broker fees on unsecured loans.

Once you’ve begun your secured loan application online, we’ll be in touch by phone to go over a few details. We’ll ask for further information, including:

We’ll likely also discuss what you plan to use the loan for. Most importantly, we’ll need to gather some information about your home. You would only qualify for a secured loan if you’re a homeowner.

To make our call with you move as quickly as possible, it would help to have some details of your current financial situation to hand. Recent bank statements, payslips and a mortgage statement would all be useful in case anything comes up that we’d like to know about you.

Some lenders might allow you to transfer a loan to another property, while others won’t. Fees may apply, and you would still be expected to keep up repayments during the transition period.

If you’re a landlord, a secured loan might affect your tenancy agreement. Read our guide to loan eligibility to find out more.

You can pay off the outstanding balance on a loan at any time. However, many lenders will charge an Early Repayment Fee. Depending on the size of the loan, this might make early repayment a less desirable outcome, so make sure you can afford to stick to the repayment plan from the outset.

Some lenders may offer you the chance to take a ‘payment holiday’ on your loan. However, you should make sure this won’t change your financial situation before agreeing to their terms. Payment holidays might show up on your credit report, so it’s important to discuss it with your lender first.

In most cases, no. Your secured loan lender will likely need permission from the mortgage lender before they can place a charge on the property. But apart from that, provided you keep up with the repayments on both, a secured loan won't affect your mortgage.

Not all lenders in the UK accept people with bad credit histories. This means there are fewer options for a secured loan with bad credit. But they are available, and if you make your payments on time, you can improve your credit score. In general, it’s easier to find unsecured loans with bad credit, for smaller loan amounts below £5000.

Secured and unsecured business loans are available to help you get your company off the ground or to expand. As with normal loans, unsecured business loans offer higher interest rates, but they’re not usually secured against an asset.
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