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This is very similar to a personal loan but is secured on your house. This means that if you can’t afford to pay the loan back, the loan company can sell your house to get the money back that you owe them. This gives a much greater risk when borrowing money compared to a personal loan, where you will not lose any property if you cannot repay. In reality repossession rarely happens, with only 36,300 happening in the UK during the whole of 2010 according to The Council of Mortgage Lenders (CML). What it does mean is that if you can get a personal loan, you should probably pick that option for peace of mind. Secured loans are usually better for people with a less than good credit rating, who may have been turned down for a personal loan. You can borrow money over 5 years to 25 years, thus giving you much lower repayments if that is important to you. The APR is usually only a little higher than with a personal loan.