Most people need to borrow money at some point during their lives and if you are already a home owner, a secured loan may be the best option for you. A secured loan is a loan that is secured against some form of asset. Typically this will be a home but it can be another item with high equity such as a car. The amount you will be able to borrow will vary from lender to lender, who will take into account your personal circumstances. The lenders will then produce a quote which will include details of the amount to be borrowed, the length of time the loan will run for and the interest rate they will charge you. All of these factors will depend on the information you provide them, such as whether you are employed or unemployed, whether you have a good credit score or a bad credit score and the value of the asset you wish to secure the loan against. You should always think carefully about how you will manage your loan as defaulting on payments could lead to you losing your home. In some cases an unsecured loan may be a better option to raise some cash as you do not stand to lose your assets if repayments become a struggle. The most popular option for an unsecured loan is a personal loan, which are very easy to set up and typically have a fixed ARP for the term of the loan. However if you need to borrow larger sums of money for a longer period of time then a secured loan can work out considerably cheaper.

If you have decided that a secured loan is for you, the next step is to apply. Many leading lending organisations now offer many different ways of applying for their secured loans in order to cater for all their different customers needs. Most lenders will accept applications for secured loans via their branch network, over the telephone, from a written application form or online via their website. With such a variety of ways to apply all you need to do is choose the right one for you! Applying online is often the fastest method of applying and can take as little as ten minutes to fill out the necessary details required. Initial screening of your application is usually processed very quickly and some lenders promise that if you fill out an application via their online systems you can expect a response within an hour. The only difference in response time is for loans that are worth more than twenty five thousand pounds, as the lending of this amount of money is regulated. If you want to borrow more than twenty five thousand pounds, there is a 7 day consideration period imposed on your application and further processing can not continue until this time is up. The idea behind this, is so that you, the borrower have enough time to fully assess the implications of the credit agreement you will be entering into and to ensure that you are fully aware and have understood the terms and conditions.

The response you receive to you application will tell you whether or not the lender believes you a suitable candidate for their secured loans. You will be assessed on the factors mentioned about and if you are married your spouse's personal circumstances will also be considered. To ensure this all lenders insist that for married applicants, include both spouses on the initial application form. If you pass the initial screening, your application will move to the next part of the process where by your credit score is checked. It is common practice for lenders to use credit scoring facilities and credit reference agencies to provide them with your credit score. This practice enables the lenders to assess your credit history and current ability to make payments and then determine what category of borrower you fit into. The credit reference agencies will provide the lender with an analysis of all the financial products you subscribe to and whether or not you make regular payments towards them. Your credit history will also be provided, and will detail any adverse credit situations you may have been in. Details of your home address and whether or not you are on the electoral roll are the final details provided, and make up your final credit score. Lenders will each have a minimum credit score to which they will lend money to. Anybody whose credit score is worse than the minimum will be refused credit as they are seen as two high a risk. If you pass this stage of the screening process you application will be successful, and the next steps are to agree the terms and conditions of the loan. Once this is complete you can expect to receive your secured loan in seven to ten working days.