It’s a loan that is secured against a home over a fixed period of time. As such it can be used to borrow larger amounts, with generally lower rates compared to other borrowing options.

You would need to own your own property or hold a mortgage to be eligible. However, if you fail to pay back the loan or default on it, your home could potentially be sold to enable the lender to recoup any losses.

You might not have access to savings, or simply don’t want to disturb your main mortgage. So you may decide to invariably take out a secured loan to cover large expenses such as home improvements, debt consolidation or an investment in another property.