What is a secured loan?

Secured loans or second charge loans are a type of mortgage, secured against property where there is an existing mortgage. They are taken out in addition to the main mortgage.

They allow homeowners to borrow larger sums of money, often at better interest rates, than they could by unsecured means.

The actual amount that can be borrowed, interest rate charged etc, depends upon the amount of equity in the security property, the applicants’ credit history and personal status.

Just like a first main mortgage, they are regulated by the FCA (Financial Conduct Authority), so borrowers are covered by the same level of consumer protection.

Useful pages:

• Secured Homeowner Loans
• What are Secured Loans?
• Are second charge mortgages regulated?

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