If you have a bad credit rating, a secured loan can be used to avoid incurring high interest rates or penalties by attaching the balance of your loan to an item of your property, such as your house or car.
Even if you have a good credit rating, this kind of security is typical for loans over £25,000 or over very long repayment periods. The maximum amount you can borrow is usually based on the value of the property, although for very large amounts you may be limited to a multiple of your salary.
As with all secured borrowing, if you do not keep up repayments the lender may be able to repossess your house, car, or whatever other property the loan is attached to.
