Secured loans once thought to be a last resort, as they are secured against your home, have seen a recent surge in popularly. Previously most people in search of credit would consider the attract rates of a personal loan as opposed to the riskier secured loan. However amid fears of an ongoing credit crunch, lenders have raised the rates of personal loans making them less competitive in comparison to other lending solutions.

Finance website MoneyExpert.com has conducted research that shows that the lowest interest rate being charged for a secured loan of around £15,000 is currently 5.9 percent. This is almost 2.5% less than the interest rates for a personal loan, which average at 8.4% for £15,000.

Although a secured loan has more risks attached for the borrower, it seems that they maybe becoming a much more attractive option. Individuals with worries over personal debt may find that they can get cheaper credit by swapping their existing loans to a secured loan deal. However individuals should be aware that if they take this option they could put their home at risk if they cannot make the repayments.