But what are the advantages of secured loans for debt consolidation? How do they work? And how do you find the best loan for you? We explain.

How do debt consolidation secured loans work?

If you are a homeowner and have equity in your home, you may be able to take out a loan secured against your property for the consolidation of debt.

A secured loan is generally taken out in addition to your main mortgage and involves a lender taking a legal 'charge' over your property. The money is secured on your home meaning that your home is at risk if you don't keep up your repayments.

The aim of the additional loan is for you to raise enough money to repay unsecured debts such as personal loans or credit cards. This would ideally be so that you pay a lower interest rate on your borrowing, and also only have one monthly payment to repay.

Why should I consolidate debts with a secured loan?

Once you consolidate debts with a secured loan, the lender has a legal interest in your property. This additional security means they can generally offer lower interest rates on loans for larger amounts.

If you're paying higher rates on unsecured debt - such as loans or credit cards - you may be able to save money by consolidating this debt.

In addition, when you take out debt consolidation secured loans it means you're left with one manageable monthly repayment rather than lots of smaller payments to various creditors.

The downside of many debt consolidation loans, however, is that you may be offered a deal that reduces your monthly payments, but extends the term of your borrowing. This means you'll end up paying more back and making repayments over a longer period than if you'd have stayed as you were. For this reason it's important to borrow over the shortest period possible.

Remember that your home is normally not at risk if you fail to keep up repayments on unsecured borrowings but it will be if you consolidate debts with a secured loan.

How do I find the cheapest homeowner debt consolidation loans?

With dozens of lenders offering secured loans for debt consolidation, finding the right deal for you can be tough.

You need to work out how much you need to borrow and then look for the loan that will offer you the lowest interest rate.

You can use our secured loan comparison to compare your options and find a secured loan.

Remember to compare the features and benefits offered by each homeowner loan provider as well as the terms and conditions so you don't get caught out.

You should also compare the minimum and maximum loan limits, the maximum 'loan to value' a lender will consider, the minimum and maximum loan terms and the indicative APRs that the lenders charge and only apply for the secured loan that best suits.

About our loans comparison


Who do we include in this comparison?


We include secured loans available directly from lenders and through brokers on our panel. They are all from lenders regulated by the Financial Conduct Authority. Here is more information about how our website works.


How do we make money from our comparison?


We have commercial agreements with some of the companies in this comparison and get paid commission if we help you take out one of their products or services. Find out more here.
You do not pay any extra and the deal you get is not affected.