The payback time on the loan is significantly longer; with some banks in the U.K. offering as long as 35 years on mortgages. In contrast, an unsecured loan can have high interest rates, will need to be paid back quickly, and is only applicable for small amounts and personal purchases.
When applying for secured loans, it is helpful to review your financial information. Any bad credit history will make a loan more difficult to obtain, and will increase the interest rate. Also, it is very important to be sure that the loan can be paid on time, as usually banks require monthly instalments. Failure to meet the instalments could mean foreclosure of your home/sale of your property. Therefore it is wise to make sure you are ready and able to apply for secured loans.
With the current credit crunch due to unscrupulous subprime lending (lending money to risky clients) secured loans are helpful in restoring faith in the banking system, and are useful to the individual who wants to make larger purchases. It goes without saying that you should be careful that your reach does not exceed your grasp, plan carefully and avoid needless hassle.