Homeowners

What is a secured loan?

A secured loan, also known as a homeowner loan or second charge mortgage, is specifically designed for homeowners. Your property is used as security and acts as a safety net for the lender. This means you’re more likely to get approved, even if you have a less-than-ideal credit score. You may also be approved to borrow a larger amount of money than with an unsecured loan.

Homeowner loans are secured against your property. Before you apply for a secured loan, be aware that your home is used as security. This means your home may be at risk if you fall behind with your secured loan or mortgage repayments. Remember, if you consolidate your existing borrowing, you may be extending the term and increasing the amount you repay in total. Loans are subject to status, and the rate you are offered may change based on your individual circumstances.

Is a secured loan right for me?

Finding the right loan is important, and it depends on your individual circumstances. You need to weigh it up and remember that falling behind with repayments could put your home at risk. But there are several reasons why you might consider getting a secured loan:

Borrow more

Here at DCD Lending, secured loans go up to £5,000,000.

Lower interest rates

Using your home as security may enable you to access more competitive interest rates.

More time to repay the loan

You can spread your repayments over 3 to 30 years with DCD Lending. Longer loan terms can mean lower monthly repayments, but you may end up paying more interest in total.

Good credit isn’t essential

You could get approved for a secured loan even if you don't have a good credit score, as your property balances out the risk from the lender’s point of view.