Get ready to maximise your loan power!

Secured loans

Giving you access to bigger funds with attractive low interest rates.
Get a quote

Cashfloat acts as a credit broker, not as a lender, with our secured loans. We will help you find the best rate from our panel of lenders. Cashfloat does not charge a fee for this service, but we do earn a commission. This will not influence the interest rate you are offered in any way.

Warning: Late repayments can cause you serious money problems. For help, go to

What is a secured loan?

Secured loans, also commonly referred to as homeowner loans, are a type of loan in which an asset serves as collateral for borrowing money. An asset can be any valuable property, such as a car or equity in a home.

Secured loans typically offer a larger sum of money at lower interest rates than unsecured loans, as they are less risky for lenders.

When taking out a loan, you must repay the borrowed amount plus interest every month. Secured loans come with additional risk. Failing to make required payments may result in the repossession of the property used as collateral.

Is a secured loan right for me?

The answer to this depends on what you require a loan for. If you want to make a large purchase or consolidate debts, a secured loan might be the best option.

Secured loans come with various features that can help make them more attractive and convenient for borrowers. You may be able to choose the loan term or repayment method that works best for you, for example.

However, as mentioned above, an additional risk is involved with taking out a secured loan. You must ensure you can make the required monthly payments, or you risk losing your property.

How much can I borrow with a secured loan?

How much you can borrow depends on how much your asset is worth. You can borrow a much larger amount if you use your house as collateral because it’s highly valuable. Importantly, you should not borrow more than you require and can afford to repay.

How do secured loans work?

The process of taking out a secured loan is easy. Here is how they work:

Look for the deal that’s best tailored to your financial situation.
Choose the amount you require and for how long, then complete the loan application.
Get a quote and sign the contract.
Receive the money in your bank account.
Begin making monthly repayments, including interest, until the loan has been paid off.

What are the differences between a secured loan and an unsecured loan?

Secured loan

The loan is tied to collateral, such as your property. If you default on repayments, it may be repossessed.

Generally used to borrow larger amounts of money – even in excess of £100,000.

Loan terms can sometimes be up to 35 years, giving you plenty of time to repay the loan.

You can often get a secured loan with a bad credit rating.

Unsecured loan

No collateral. If you default on repayments, you may find it difficult to get credit in the future, but you won’t lose your property.

Generally, used to borrow smaller amounts of money – up to £25,000.

Less time to repay the loan – usually from 3 months to 7 years.

Unsecured loans are riskier to the lender, so you’ll normally need a good credit score to be approved.

What are the different types of secured loans?

Several types of secured loans are available, and they mostly depend on what you require the loan for. Here are some common types:

  • Mortgages. Mortgages are secured against the value of your home, and they also help you with the purchase of it.
  • Car loans. If you apply for car finance you will usually need to use your car as collateral to secure the loan..
  • Home Equity Loans. These loans allow you to use the equity in your home for things like home improvements, debt consolidation and more. They are secured against the value of your home.

Can I get a secured loan with a bad credit score?

Yes, it is possible to get a secured loan with a bad credit score. And, although lenders might generally be less likely to lend to you, you might actually have more luck getting a secured loan than an unsecured loan. This is because providing an asset as collateral to secure the loan reduces the lender’s risk, making them more likely to approve your application.

Get a quote

What are the Pros and Cons of a Secured Loan?

  • Lower interest rates: Secured loans usually have lower interest rates than unsecured loans, making them more attractive to borrowers.
  • Access to larger funds: Because the loan is secured against an asset, you may be able to access larger funds than what would be available with an unsecured loan.
  • Flexible terms: Secured loans usually come with flexible repayment terms, allowing you to choose a duration and method of repayment that works best for you.
  • Risk of repossession: If you fail to make the required monthly payments on your loan, the lender may repossess the asset used as collateral.
  • Risk of damage to your credit score: If you fall behind on payments, it could have a negative impact on your credit score.
  • Higher fees: Secured loans may come with higher fees than unsecured loans, including appraisal costs and closing costs.

Our expert says

Secured loans can be a great financing option for those looking to make a large purchase or consolidate debts. Still, it’s important to carefully consider the risks associated with them. Secured loans come with lower interest rates and access to larger funds, but there is an additional risk of repossession if payments are not made on time. It is important to make sure that you understand all the terms of your loan before taking it out and ensure you are able to make the required payments.

Pat Harding, finance expert

What are homeowner loans?

A homeowner loan is a loan taken out by a homeowner and secured against the value of their home. It is a type of secured loan often used to make home improvements, consolidate debt or pay for a large purchase.

Are credit scores taken into account when applying for a secured loan?

Yes, credit scores are considered when applying for a secured loan. Lenders will use your credit score to determine your creditworthiness and the amount of risk they are taking on by lending you money. A higher credit score will indicate to lenders that you have been responsible with other forms of debt, making them more inclined to approve your loan. It is advisable to check and improve your credit score before applying for credit.

Can I take a break from making my repayments on a secured loan?

Some lenders may offer payment holidays during the loan term, giving you a break from making repayments. However, this will depend on the terms and conditions of your loan agreement. It is important to check your agreement before taking a payment holiday.

How will a car finance calculator help me?

A finance calculator will help you understand how much you will end up paying and help you decide if you can afford a finance package.

Can I pay off a secured loan early?

Yes, you can pay off a secured loan early. Many lenders will allow you to make additional repayments or to make a lump sum payment at any time during the loan term. This can reduce the total amount of interest you will have to pay as well as reduce the length of your loan. However, some lenders may charge an early repayment fee, so it’s important to check.

What documents do I need to apply for a secured loan?

When applying for a secured loan, you will need to provide certain documents to the lender to verify your identity and prove that you meet the eligibility criteria. This can include proof of income, bank statements and documents related to the asset used as collateral. Additionally, some lenders may require a credit check or other forms of verification.

Am I eligible for a homeowner loan?

You may well be eligible for a homeowner loan if you’re a homeowner with sufficient equity in your property. You must also be a resident of the UK and hold a UK bank account.

Why choose Cashfloat for your unsecured loan?

Cashfloat has teamed up with the top secured loan lenders in the UK to offer you competitively priced secured loans with flexible terms and repayment options. We understand that taking out a loan can be a big commitment, which is why we strive to provide our customers with the best service possible.