Borrowers seeking an attractive secured loans deal have been warned that they may not be offered the rates advertised by lenders.



The lending market is extremely competitive, causing banks to frequently advertise low-rate APR secured loans in order to attract customers.





However, these deals may not be applicable to certain consumers, as lenders use risk-based pricing meaning borrowers with a poor credit history will have to pay a higher rate.



\"The rate you see advertised can differ from the ones you actually get,\" explained Lisa Taylor, an analyst at Moneyfacts.



Ms Taylor commented that lenders \"are relying on risk-based pricing far more\" and therefore \"the lender may loan the rate to reflect credit history\".



Borrowers are urged not to base their financial planning around secured loans rates they see advertised, as the real picture could prove significantly different.



Britons who are keen to splash out on a big purchase, such as a new car or an exotic holiday, may find that secured loans are the best method of financing such a move.



However, borrowers must make sure they will be able to afford the repayments in order to avoid landing in debt, while shopping around for the best deal on the market could lead to considerable savings.