Secured loans are also sometimes called second charge loans because the secured loan lender is second in line to get their money back if you are unable to repay the debt. The mortgage company with the first charge takes priority in the event of default.
Given the additional element of risk for the second charge lender, secured loans tend to be more expensive in terms of interest rates and fees in comparison to a traditional first charge mortgage.
The most common uses of a Secured Loan are consolidating debts, home improvements or to pay major costs, such as a wedding or holiday. You can use a secured loan for almost any purpose.
