Security and collateral are interchangeable terms used to describe possessions or property that have a locked-away value. You might have capital in your bank account; this is not collateral as it has a liquid value. Securable assets are items of property in which the capital remains dormant; they offer security to lenders such as banks or loan companies because the value they offer is not likely to change without property sale involved.

Securable assets can be any type of owned or part-owned property which possesses an inherent value. This could take the form of an item such as a car, although security taking the form of a house or other residential property is far more common. Most lenders accepting applications for UK secured loans today will insist that the borrower owns or part-owns their own home.