A secured loan is a loan taken out against your home, also known as a second charge loan. It sits alongside your existing mortgage, meaning you’ll make two monthly payments—one to your mortgage lender and one to the secured loan provider.
People often use secured loans for home improvements or to consolidate debt. They can also be useful if you want to keep your current mortgage rate, avoid early repayment charges, or if your circumstances make it harder to borrow more from your existing lender.
Secured loans can be quicker to arrange, more flexible, and may allow you to borrow more than a traditional mortgage in some cases.
