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Secured loans can greatly increase flexibility with loan types, loan amounts, and interest rates offered by lenders to consumers. UK consumers with good credit can find some secured products available with annual percentage rates (APR) as low as 4 to 5 per cent at the current market. Typical APRs are around 11 per cent, which means even an average borrower can find reasonable rates by securing a loan.

Secured loans are loans issued to debtors who offer collateral or property as security in exchange for the loan. Some borrowers offer security out of necessity, and some do so to get the best products and rates they can. Mortgages and car loans are examples of secured cover that most Brits have because of lender requirements. However, many Brits also use home equity to get homeowner loans or personal loans.

These secured products are used for a variety of purposes. People often refer to secured personal loans as any purpose loans because lenders award them for virtually any use, as long as the customer's background and the secured property meet the criteria required.

Secured loans or any purpose loans are commonly used by people looking to consolidate debt. Brits that get wrapped up in higher interest credit card or loan debt are turning to lower rate secured debt to save interest costs. Other people turn to secured cover to fund home renovations and repairs, vacations, business startups or expansions, medical expenses, and many other items.

By offering security, borrowers can get cover up to 250,000 pounds, with good credit, and at affordable rates. These great options and terms are what prompt many borrowers to secure debt even when it is not required.

Bad credit borrowers, on the contrary, use security, in many cases, because it is required by lenders. The good news for borrower with poor credit is that there are many great credit options available today, and they are easier to find through loan brokers. Many lenders do ask for security, though, to offset the risk of lending to someone with a demonstrated deficiency in repaying debt. Again, the risk of the loan is greatly reduced when the lender gets a lien on the property.

While there may be some unsecured loan products available, including credit cards, for bad credit borrowers, they are often products with extremely high rates and unfavorable terms.

Secured loans do pose a risk, and borrowers must be fully aware of that. Borrowers' who secure debt for better rates, when they are not required to, must be sure they do not take on more debt than they can manage. Bad credit borrowers often do not have the same selectivity and are often looking to replace other finance burdens with more opportune debt. They still must be cautious about products and providers.

Independent loan brokers offer great resources for consumers of all credit types and all loan interests. Their expertise is helping narrow down product options and find the best rates for consumers based on their needs and situations.