Secured loans, the financial comparison service explains, are beginning to offer more competitive rates of interest and are drawing in customers considering their debt consolidation options.
“They may also have a low income or may need to borrow larger amounts over longer periods of time,” Sean Gardner, chief executive of MoneyExpert.com, remarked.
“Home loans can be a lifeline for the applicant, but they should be taken on with a degree of caution,” he added.
Another reason for taking out a secured loan for many homeowners was to fund home improvement efforts the research found.
With interest rates having been raised in January for the third time since August last year, those looking to borrow money for whatever reason might be tempted by the debt management security offered by a fixed-rate loan.