Mortgage vs Secured loan

planetdougli

Hi there everyone, just a query really
I am just about to purchase a new home, but i will only need a small mortgage (approx £20,000), I am dept free, and have no major outgoings at the moment (of course this will change once a purchase)
and I was just wondering if it would save me money, or if it is even possible to get a secured loan rather than a mortgage.

thanks in advance for your assistance. Also although not directly related can you add a partner on after you have your mortgage, in order to still gain the first time buyer benefits (as she already has her own home)

thanks again D

Richard_Webster

A mortgage is a secured loan. They are the same legally. A mortgage is the legal term for the security that a lender takes to protect its loan.

In practice Banks seem to use the term to indicate a loan governed usually by the Consumer Credit legislation where the interest rate is a little lower than an ordinary unsecured loan precisely because it is secured. The rate is usually significantly higher than the rate available for products that come under the "mortgage category".