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Secured Loans

Secured loans use property as collateral against your loan, often at a lower interest rate than unsecured loans.

With a secured loan, you may be able to borrow a larger sum of money with a longer repayment period than other types of loan. This is done by securing the loan against an asset such as your house or car. Although a secured loan offers more flexibility, there are risks you should be aware of before taking one out. Read on to find out more.
  • Loan is secured against your home or another asset

  • You may be offered lower interest rates and the chance to spread out repayments over a longer term

  • Defaulting on repayments could put your assets at risk

  • Failing to keep up with your repayment schedule will impact on your credit score

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What is a secured loan?

A secured loan is a type of loan guaranteed by a specific asset that you own, such as your home or car. Whatever the asset, taking out a secured loan usually means you can borrow more money than you would otherwise have been able to as potential lenders see you as a more reliable borrower with lower risk attached.

Benefits of choosing a secured loan

With a secured loan, you’ll often find that repayment periods are longer, interest rates are lower and credit amounts are higher. This is because the lender has a substantial asset to secure the loan against, reducing the risk they face in the case of missed repayments.

Risks of choosing a secured loan

If a borrower consistently struggles to make repayments, and can’t repay the loan, the asset in question may be used to cover the outstanding debt by lenders.

In addition, borrowing a larger amount over a longer period of time could mean you pay more interest in the long run. It’s important to consider what you can afford before you apply for a secured loan.

Difference between secured and unsecured loan

Secured and unsecured loans offer potential borrowers two quite different ways to access the cash they need. Only those who own their own home or other asset can access secured loans. Borrowers in this position can typically access better interest rates and potentially borrow larger amounts.

Unsecured loans are more easily accessed by customers with a strong credit rating – lenders see these borrowers as a low risk, so don’t need to offer the security of an asset to support their loan application.

Secured loans vs equity release

Customers who own their home may consider equity release as a way of raising money. Here a lump sum or regular income is paid out by the lender; in return, they take possession of a percentage of your home, and get their money back when the house is sold.

A secured loan on the other hand uses your property as security to borrow on. In these cases, the lender would only have a claim for your home if you fail to keep up with your payments.

Can I get a secured loan?

If you’re applying for a secured loan with poor credit, or wonder if your age or employment status will be a factor, we can help.

Find out more about secured loan eligibility in our dedicated guide.

Applying for a secured loan

Before applying for a secured loan, you should first check you’re not borrowing more than you can afford to pay back. Falling behind on repayments could mean losing what you’ve borrowed against – your home, car or other important asset.

Make sure your credit history is in good shape and your credit report doesn’t contain any errors. Doing this will give you the best chance possible of getting the loan amount you want, at rates you can comfortably afford. Secured loans with bad credit may still be possible, but it helps to tidy up your credit report before you apply.

What do I need to apply for a secured loan?

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

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

In order to help 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 really useful in case anything comes up that we’d like to know about you. If you’re arranging a debt consolidation loan, we may ask for details on the other loans you have, like outstanding balance, a typical repayment amount and how long you’ve had a loan for.

Frequently asked questions about secured loans

Loans secured against property

Can I pay off a secured loan early?

You can pay off the outstanding balance on a secured loan at any time. However, many lenders will charge an Early Repayment Fee for doing so, equivalent to one or two months’ worth of interest payments. Depending on the size of the loan, this might make early repayment a less desirable outcome, so make sure you can afford the repayments from the outset.

Can I take a break from paying back my secured loan?

Some lenders may offer you the chance to take a ‘payment holiday’ on your secured 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 first.

Secured loans from Norton Finance

Norton Finance can find a secured loan that corresponds to your personal financial situation and your individual needs. And, because Norton is a broker rather than a building society or bank, we can scour the full market for exactly that.

With access to around 600 products, we can find something that suits your needs. The flexibility of the loan products we find will let you borrow from £3,000 to £500,000, over almost any period between 1 and 30 years.

We’ll make an ‘in principle’ decision on your application within 24 hours of receiving it, and can make a direct payment in around 14 days.

Secured loan details

With access to around 600 products from our panel of lenders, we offer flexibility and a straightforward loan process. There’s plenty of variety around maximum loan amounts and repayment terms, giving you control of your financial future.

What can I use a secured loan for?

You can use a secured loan for any purpose - the money is yours to spend as you see fit. However, most people who take out secured loans do so with a specific, large project in mind.


Home improvement

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


Keep plans for your big day on track with a secured loan.

New car

If your set of wheels has seen better days, think about applying for a new car loan.

Debt consolidation

Improve your monthly situation by borrowing to settle your other loans, and repay at one single rate.

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