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Online Secured Homeowner Loans

Perhaps the best known type of secured loan is a mortgage where the money you borrow to buy a property is secured against that property. This means that the lender effectively owns more of the property than you do at the start and it will generally be many years before the balance swings in you favour. The main consequence of this arrangement is that if you persistently default on the agreed repayments, you're likely to lose your home. The property will be repossessed and sold by the lender in order to recover the amount lent to you.

Secured loans also apply in other situations, particularly to finance the purchase of high value items such as cars and furniture. You'll generally find that a secured loan comes on better terms than an unsecured one simply because the lender has some security against bad debt and is therefore at less risk of losing money on the deal.

Secured loans are often known as homeowners' loans because, obviously, they're only available to homeowners. This type of loan does require that your home is put up as security and so, as for a mortgage, you risk losing your home if you fail to keep up the agreed repayments. One way to counter this is to take out payment protection insurance, which will make the payments for you in the event of illness or job loss. This does add to the overall cost of the loan but at least removes the worry of losing your home - assuming, of course, that you don't miss any insurance payments.

If you need to borrow money, a secured loan may be your only option. A bad credit history may mean that lenders aren't prepared to offer an unsecured loan and so you may have to commit some security before you're given the money. You may also be restricted to a secured loan if you're self-employed. No matter how long you've been doing this or how successful you are, lenders are put off by the lack of regular, assured income.


Representative Examples

Small Loan: To borrow $1000 over 28 days, you would repay $1300 with an interest rate of 30%. (1934% APR variable.)
Unsecured Loan: To borrow $1000 over 12 months, you would repay $1700 with an interest rate of 70%. This is 234% APR variable.
Secured Loan: If you borrowed $10,000 for 7 years, you would repay $19,566. This is 17.8% variable.

*Loans under $500 can be paid to your bank account within 15 minutes of approval. Loans under $1000 can typically be paid into your bank account on the same day. Loans over $1000 may take between 3-5 working days.

The APR will vary depending on the amount borrowed, and the length of time the money is borrowed over. Before applying for any financial product or service, you should always read the terms & conditions in full.

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