Secured loan

These should be seen as the lending of the last resort because the risk to the borrower can be so much more severe than unsecured borrowing.

Secured loans mean that a borrower has to provide some security before they are accepted for a loan. This is usually a car or a house. Individuals who are considering taking out a secured loan need to consider the risks carefully and ensure that they can meet the repayment schedule.

Secured loans are money borrowed against an asset, for example, a car or house, which acts as a guarantee that the loan will be repaid. Secured loans can be secured on almost any asset that is owned by the person taking out the loan – although the most common form of secured loan is a mortgage and the security therefore a house.

This type of loan tends to be quicker to arrange, more flexible enabling you to spread your borrowing over a longer period and come with more competitive interest rates as there is less risk for the lender. It is worth shopping around for secured loan deals as some will be more competitive than others.

	Derbyshire BS cuts personal loan rate to 5.1 per cent The Derbyshire Building Society has cut the rate on its personal loans between £7,500 and £10,000 to just 5.1 per cent taking it back to the top of the best-buy tables along with the Clydesdale.
	Clydesdale Bank cuts loan rates to leap to top of best-buys The Clydesdale and Yorkshire Bank has cut the rate on personal loans between £7,500 and £15,000 to 5.1 per cent beating the Tesco Bank deal to go to the top of the best-buys.
	Sainsbury's Bank cuts personal loan rate to 5.4 per cent Sainsbury’s Bank has cut the rate n personal loans for Nectar card holders to just 5.4 per cent for people who borrow over a one to three-year term.
	Derbyshire BS cuts personal loan rate to 5.4 per cent The Derbyshire Building Society has cut the rate on its personal loan between £7,500 and £14,999 to 5.4 per cent matching the deal from Sainsbury’s Bank.
	M&S unveils best-buy personal loan rate at 5.5% Marks & Spencer has launched a new personal loan for applicants who want to borrow between £7,500 and £15,000 over a 1-5 year period at just 5.5 per cent.