Secured Loan

• A secured loan is a loan where the borrower provides Security, in the form of property, for the loan to protect the lender in the event that the loan is not paid back. Because this protection is provided for the lender, the interest rate that they charge is often lower than for an Unsecured loan.

In the Purple Loans website, we use the expression "mortgage" to refer to loans that are usually regulated by the Financial Services Authority and in that way differentiate them from other loans, some of which are regulated by the Consumer Credit Act. We refer to these other loans as "secured loans" on the website.

A secured loan on our website is therefore a loan that is secured on property but which does not fall into the definition of a Financial Services Authority regulated mortgage, for example, a "second mortgage" or "top up" loan or a loan to invest in property for letting (often referred to as "buy-to-let").

Secured loans are sometimes referred to as secured personal loans.