You can only apply for a secured loan if you are a home owner, using your home as security. This means that if you get into difficulties repaying the loan, the lender could repossess your home and sell it to get their money back.
You borrow a fixed amount and have to repay it in fixed instalments over a set period (the term). You’ll be charged interest on what you borrow. The interest rate varies depending on the type of loan.
APR (Annual Percentage Rate)tells you the cost of the loan taking into account the interest on the loan and other charges.
Depending on your credit score interest rates for secured loans are usually lower than unsecured loans but there could be extra fees, and of course you could be putting your home at risk.
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