Secured LoansA Secured Loan is a loan secured on property, asset, or collateral (i.e., homes, cars, jewellery). The secured loan you receive is backed by your property of equivalent value. Hence borrowers defaulting in repayment of secured loans give their lenders the legal right to repossess the property and recover their money. This reduces lenders’ risk which means secured loans can be for greater amounts of money, interest rates may be lower, and repayment terms will be longer.
Some different types of secured loans are listed below:
- Mortgages and remortgages
- Homeowner loans (also known as home equity loans)
- Auto loans
- Logbook loans
- Pawn broker loans
- Title loans
- Consolidation loans
If you default on a secured loan, then your creditor can take possession of the asset against which the loan was secured. This action is commonly referred to as foreclosure or repossession. Debt Free Centre offers free expert advice on how to avoid losing your secured property for a secured loan and other debt-related topics,
