Secured loans are easily available to homeowners in the UK. Most lenders feel safe lending money to those who can offer their home as collateral to the lender. Huge amounts can be taken for a longer repayment term as secured loans. The loan term may stretch from 5 years to 30 years and the loan amount depends on the home equity valuated by the lender. Greater the equity, more the loan amount.
Secured loans for borrowers with bad credit
Homeowners with bad credit are at advantage over others like tenants, and students. With a fixed asset i.e. the home as the security, the lender will be inclined to give secured loans to the customers, even if they have had an adverse credit record. First, have a look at the factors make your credit report adverse.
Arrears, missed payments and late payments
Defaults in your repayment records
CCJs (County court judgments registered against you)
Declared bankrupt
Frequent job and address changes
A negative or less than 0.36 DTI ratio
Too many loans running at the same time
Bad disposable income
Expenditure > income
Frequent cheque bounces
So, if you have or are suffering from any one or more of the above stated factors, there are chances that lenders may not approve you unsecured loan. However, as a homeowner you have excellent chances to of getting the secured loan approved despite bad credit. Every lender has one major satisfactory factor when he grants secured loans and that is in case you fail to repay the loan, he can repossess your home and recover his money. Lender's motivation is borrower's risk.
So, before you make any decision regarding secured loans, just ask yourself one question honestly “Will I be ale to repay the loan?” If you are doubtful, never ever go for
secured loans. You may end up loosing your most treasured procession i.e. your home.
The author is a business writer specializing in finance and credit products and has written authoritative articles about personal loans, cheap secured loans . He has done his masters in business administration and is currently assisting Shakespearefinance as a finance specialist. 
