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The prime minister has announced that the government will support and encourage banks to make new loans in order to boost the economic growth of the UK, it has been reported.

Speaking to business leaders about a new economic programme, Gordon Brown said: "It is to enable banks to start lending again by whatever means are necessary and we will continue to discuss that with them."

He also stated that loans would be available to small businesses, which may be of interest to those who have considered secured loans to finance a large investment and are worried whether financial organisations would grant their application.

Furthermore, he noted how he had received a letter from one woman who could not sleep because she was so worried about the financial crisis, a scenario many people may have found themselves in.

But lenders should be aware of the individual circumstances of a borrower to ensure that financial lifelines are not cut off, claims Tom Howard, a spokesperson for the Consumer Credit Counselling Service.

Secured loans may help a family through difficult times and could have a lower annual percentage rate than other loans because it may be secured against a current property.