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What is a secured loan? What could a secured loan do for me? How do I find the right secured loan? Why choose a secured loan from FIRSTPLUS? How do I apply for a secured loan from FIRSTPLUS?
There are two types of borrowing - secured and unsecured. Most people are familiar with unsecured borrowing, such as personal loans, car loans or credit cards.
However, with a secured loan the lender will secure the loan on your assets - usually the money or equity tied up in your property.
Secured loans often have a lower rate of interest than unsecured loans. A loan secured on your property is less risky for the lender, so they will normally charge lower interest rates over the loan term.
Secured loans are typically used as a way of borrowing larger amounts and repaying over a longer term. You can usually borrow between £5,000 and £100,000 with a secured loan and typically you can choose to repay over a period of up to 25 years. Although secured loans may offer lower interest rates and more affordable payments than unsecured loans, because you are repaying over a longer term your total interest payments will increase.
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Secured loans are usually for amounts in excess of £5,000 so they can be useful if you're planning a major project or purchase. For example, you could use a secured loan to fund home renovations, such as a new kitchen, bathroom or extension. Some people also use a secured loan to consolidate other debts. This means they consolidate debts from their credit cards, store cards and other loans into a secured loan which offers them a lower rate of interest and one manageable monthly repayment rather than paying many different bills with a range of interest rates.
There are a number of places you can look for a secured loan. You can apply direct to a specialist loan company like FIRSTPLUS, or you could seek help from a loan broker who will compare different secured loans and help you decide on the best one for you. Alternatively, many banks also offer secured loans.
FIRSTPLUS offers secured loans for any amount between £5,000 and £100,000. The interest rate is typical 8.5% APR variable.
Many secured loans only allow you to borrow up to 90% of the value of your home, less your first mortgage, in other words 90% of your equity. By contrast, with FIRSTPLUS you could be eligible for a loan amount up to the value of your home, less your first mortgage. You also have between 5 and 25 years to repay your FIRSTPLUS secured loan so it effectively allows you to borrow more, more affordably.
First of all use our loan calculator to find out what your affordable monthly payment could be.
You can apply online straight away for your FIRSTPLUS secured loan. Alternatively, if you'd like to speak to one of our secured loan advisers you can call free on 0800 050 0202* and discuss your secured loan needs. Typical 8.5% APR variable.
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