Simon Nicholson

Expertly compared by Simon Nicholson

Products Updated May 25, 2018

Secured Loan With Bad Credit

If you have an adverse credit history or a low credit score then our award winning experts can help find you a great deal. They will compare the poor credit secured loans market place to find you the best lender to match your circumstances.

Homeowners - Our award winning experts can compare the cheapest loan deals from over 19 approved Lenders. All credit types accepted:

Think carefully before securing other debts against your home.
Your home may be repossessed if you do not keep up repayments on a loan or any other debt secured on it.

Questions? Call us on 0161 820 8099

Learn More
All credit types
Rated 5.0/ 5

Smart Money Why?
Why?

This provider is our Expert’s Choice in its category as it won tops marks for the following.

  • TRUST
  • VALUE
  • EXPERTISE & KNOWLEDGE
  • CUSTOMER SERVICE

Learn more about how we review and assess the providers here on Lending Expert.

Loan Amount
£3,000 - £1,000,000

Representative APRC
From 3.9%

Loan Term
3 - 35 years

Loan Type
Residential
& Buy to Let

Status
Homeowners Only
Max LTV 100%

Award winning broker of the year Smart Money have made it to the top of our list as our No 1 recommended provider for homeowner loans. We are independent and have access to the major lenders in the market. All quotes are free and without any obligation.

Learn More Available via broker only
All credit types
Rated 5/ 5

Paragon Bank

Loan Amount
£20,000 - £500,000

Representative APRC
3.9 - 8.8%

Loan Term
5 - 25 years

Loan Type
Residential
& Buy to let

Status
Homeowners Only
Max LTV 85%

Second charge mortgages for homeowners in England, Wales and Mainland Scotland. We work hard to make sure we have a wide range of loans to meet our customers' needs. Get a quote today for a personal illustration from our award winning broker.

Representative Example

Learn More Available via broker only
All credit types
Rated 5/ 5

Masthaven Bank

Loan Amount
£10,000 - £500,000

Representative APRC
5.9 - 9.8%

Loan Term
5 - 35 years

Loan Type
Residential
& Buy to let

Status
Homeowners Only
Max LTV 75%

We were the first new bank to be awarded a banking licence in 2016. However, we’ve been providing a flexible and personalised approach to secured lending since 2004. Get a quote today for a personal illustration from our award winning broker.

Representative Example

Learn More Available via broker only
All credit types
Rated 5/ 5

Together Money

Loan Amount
£3,000 - £1,000,000

Representative APRC
6.65%

Loan Term
3 - 30 years

Loan Type
Residential
& Buy to Let

Status
Homeowners Only
Max LTV 77.5%

If you need to raise funds, for example, to make home improvements or get on top of your debts, and you have existing equity in your home, a secured loan could be the right option. Get a quote today for a personal illustration from our award winning broker.

Representative Example

Learn More Available via broker only
All credit types
Rated 5/ 5

United Trust Bank

Loan Amount
£10,000 - £125,000

Representative APRC
5.9 - 10.1%

Loan Term
3 - 30 years

Loan Type
Residential
& Buy to let

Status
Homeowners Only
Max LTV 85%

United Trust Bank’s highly skilled and experienced specialised mortgage team offers innovative lending products through a panel of approved introducers. Get a quote today for a personal illustration from our award winning broker.

Representative Example

Learn More Available via broker only
All credit types
Rated 5/ 5

Prestige Finance

Loan Amount
£10,000 - £2,500,000

Representative APRC
5.9 - 11.1%

Loan Term
3 - 25 years

Loan Type
Residential
& Buy to Let

Status
Homeowners Only
Max LTV 90%

Prestige Finance has been providing loans for over 30 years to UK residents and is a specialist in providing second charge loans. Prestige Finance is a wholly owned subsidiary of OneSavings Bank Plc. Get a quote today for a personal illustration from our award winning broker.

Representative Example

Learn More Available via broker only
All credit types
Rated 5/ 5

Shawbrook Bank

Loan Amount
£10,000 - £500,000

Representative APRC
5.9 - 13.6%

Loan Term
3 - 25 years

Loan Type
Residential
& Buy to Let

Status
Homeowners Only
Max LTV 90%

If you’re paying out for a number of different loans or credit cards, a debt consolidation loan from Shawbrook Bank could save you money every month in interest. Get a quote today for a personal illustration from our award winning broker.

Representative Example

Learn More Available via broker only
All credit types
Rated 5/ 5

Optimum Credit

Loan Amount
£5,000 - £500,000

Representative APRC
4%

Loan Term
3 - 25 years

Loan Type
Residential
& Buy to Let

Status
Homeowners Only
Max LTV 85%

We offer a straightforward, customer friendly approach, both during your application process and after completion of your second charge mortgage. Get a quote today for a personal illustration from our award winning broker.

Representative Example

Learn More Available via broker only
Poor Credit
Rated 4/ 5

Spring Finance

Loan Amount
£10,000 - £150,000

Representative APRC
Enquire%

Loan Term
3 - 35 years

Loan Type
Residential
& Buy to Let

Status
Homeowners Only
Max LTV 60%

We are a specialist provider of residential Second Charge mortgages lending to customers who are unable to obtain finance from traditional high street lenders. Get a quote today for a personal illustration from our award winning broker.

Learn More Available via broker only
All credit types
Rated 5/ 5

Central Trust

Loan Amount
£3,000 - £250,000

Representative APRC
11.4 - 12.6%

Loan Term
3 - 30 years

Loan Type
Residential
& Buy to Let

Status
Homeowners Only
Max LTV 75%

We’re an independently owned specialist secured loan lender in the UK and are part of the Norfolk Capital Group of companies that have been providing secured loans since 1988. Get a quote today for a personal illustration from our award winning broker.

Representative Example

Learn More Available via broker only
All credit types
Rated 5/ 5

Clearly Loans

Loan Amount
£5,000 - £100,000

Representative APRC
11.3 - 21.2%

Loan Term
1 - 20 years

Loan Type
Residential
& Buy to Let

Status
Homeowners Only
Max LTV 100%

We aim to make the process of taking out a secured loan as clear and transparent as possible. All our loans are secured on residential property by way of a second charge. Get a quote today for a personal illustration from our award winning broker.

Representative Example

Learn More Available via broker only
All credit types
Rated 5/ 5

Norton Finance

Loan Amount
£3,000 - £70,000

Representative APRC
9.1 - 12.3%

Loan Term
1 - 20 years

Loan Type
Residential
& Buy to Let

Status
Homeowners Only
Max LTV 75%

Borrow from £3,000 to £500,000 over 1 to 25 years. We’ll find the most affordable rates to suit you and give you a no-obligation quote that won’t show up on your credit report. Get a quote today for a personal illustration from our award winning broker.

Representative Example

Learn More Available via broker only
All credit types
Rated 5/ 5

Step One Finance

Loan Amount
£5,000 - £500,000

Representative APRC
9.5 - 22.9%

Loan Term
5 - 30 years

Loan Type
Residential
& Buy to Let

Status
Homeowners Only
Max LTV 95%

Our homeowner loan products are available to qualifying homeowners and owners of Buy-to-Let properties in England, Scotland and Wales with loan amounts available up to £150,000. Get a quote today for a personal illustration from our award winning broker.

Representative Example

Learn More Available via broker only
All credit types
Rated 5.0/ 5

1st Stop Homeloans

Loan Amount
£5,000 - £50,000

Representative APRC
22.83%%

Loan Term
3 - 25 years

Loan Type
Residential
& Buy to Let

Status
Homeowners Only
Max LTV 70%

Here at 1st Stop Home Loans we offer secured loans from £1,500 to £50,000 (subject to your personal circumstances) to new and existing customers. Get a quote today for a personal illustration from our award winning broker.

Representative Example

>> FREE Secured Loan Quote From Our Experts At Smart Money

Our award winning experts at Smart Money can search and compare 19 lenders from the market to find you the cheapest and best deal to match your financing needs. Quotes and personal illustrations are free from their Cemap qualified advisors.

What are the secured loan options for people with bad credit?

What are the bad credit options?

What are the bad credit options?

If you are in the position where you have a bad credit history but you need a loan then there are all sorts of options that are out there on the market. You have probably seen adverts for payday loans and guarantor loans, but these types of loans attract huge interest rates that mean paying off these loans can be difficult. Although these loans are easier to get, they are unlikely to be the best option for you to take.

Differences between secured and unsecured loans

The main difference between secured and unsecured loans is that the loan you take out as an unsecured loan is not secured against anything. This means that these are a higher risk than for secured loans and therefore they attract much higher interest rates. For a secured loan you take out the loan against something that you already own, which may be your car or your home. A car can be used for small secured loans, but if you are attempting to consolidate a large amount of debt this is not going to be a viable option for you, therefore using your home may be the option for you.

The pros and cons of using your home to take out a secured loan

The biggest pro of taking out a loan in this way is that you will actually pay less interest than any other loan method, particularly on large amounts. You also get the advantage of being able to pay back your loan over a longer term. The down side to this is that you are probably going to pay back more in the long run, but the plus side is that your monthly repayment are likely to be more manageable and so you will be able to make your payments successfully each month rather than struggling to try and make multiple individual loan payments each month.

Do some calculations before you dive into a secured loan

This calculator will give you an idea of costs. The exact amount and APR payable will be provided from the lender subject to credit and affordability checks.

Your monthly payment will be:

£136.90

Interest on this loan will be:

£714

Annual Percentage Rate (APR):

3.7%

Total repaid will be:

£8,214

While taking out a secured loan might be the only way you are going to be able to consolidate your debts into something manageable you should still do some preparatory calculations on how much you will be repaying each month as you will need to make sure that it is affordable for you. The reason you should approach this type of loan with caution is because you are securing it against your home and should you default on your payments your home could be at risk. You will also need to look at what will happen to your payments if interest rates go up to see if they will still be affordable.

Get advice

Getting good advice is essential

Getting good advice is essential

Consolidating your debts, especially with a poor credit rating, is not an easy thing to do and there are plenty of people around who can help you to find the best option for you. If you need a short term loan then a secured loan against your home is not going to give you the best deal, but if you need to borrow a large amount and need to repay it over a longer term in order to may your repayments affordable then this type of loan will offer you what you need, even if you do end up repaying more in the long term.

Make the most of any free debt advisory services you can, but did you know that you can also get advice from specialist bad credit brokers who can find all of the options that you have available to you? Doing an internet search for bad credit secured loans will get you some basic information, but as brokers work with these products all the time they will be able to find everything on the market that may be suitable for you, and it is highly likely that they will find options for you that you wouldn’t find yourself.

This is because not all bad credit secured loans are advertised on popular search sites and so it requires a specialist to make sure they have all been found. Not only that, a secured loan broker will help you to complete your application and can also help to improve your chances of being accepted for the loan as they can sometimes help to influence a lender in their decision and can also chase up the application and give you updates if it seems to be progressing slowly.

Questions? If you’re unsure which loan is right for you or you need some guidance on homeowner loans then speak to our experts on 0161 820 8099.
Their friendly advisors will be happy to discuss which options are available and to answer any questions you may have.

 

FAQ's

I have missed loan payments in past and these are registered on my credit file, will this effect my loan application?

The lender will take this into considertion as part of your overall credit history. However, missed payments in the past does not neccessarly mean you will be denied a loan. Each lenders requirements will vary, and your broker can help choose the right lender who is likely to accept your application.

I have some old CCJ's on my credit file can I still get a loan?

Yes. However, this will depend on the lender and how they access your current creditworthiness. Your broker will be able to place you application with a suitable lender.

Can I get a secured loan without a credit check?

No. All lenders will require a credit check.

Do you offer loans to self employed?

Yes. Self employed applicants are fine as long as you can demonstate and show proof of your income. If you are a sole trader business, contractor or company director then you may be required to show your HMRC figures from the SA 302 forms.

Do you offer loans to pensioners?

Yes. Applicants are accepted over the age of 65. Due to you being an older borrower there will be restrictions on the length of the loan term.

How much can I borrow?

Secured loans are offered up to 95% loan to value. However, the lender will also assess affordability of the loan and will take into consideration your earnings and the value of your home. A broker will be able to make an assessment and let you know how much you can borrow.

What are the fees?

There will be fees associated with the following:

- A one off broker fee
- A one off lender fee
- A home valuation fee

The broker and lender will let you know in advance of how much the fees are being you proceed with a loan application. Fees can also be added to the loan.

Over how long can I have the loan?

Secured loans are like mortgages in that repayments can be paid over a long period e.g up to 35 years.

Can I get a secured loan on buy-to-let?

Yes. Loans are available against buy to let properties up to 75% loan to value. There is no proof of income requirement and the minimum loan amount is £10,000.

Are loans available for discharged bankrupts?

Yes. There are a number of second charge lenders who are willing to lend to discharged bankrupts. Your broker will be best to advise you on what options you have and the lenders that are available.

Are secured loans available on ex-council houses?

Yes, our lenders will consider secured loans for:

  • ex-council houses, flats and maisonettes
  • high-rise properties (yes, even ones above 6 floors)
  • properties with poor valuations (when the property is in a less than perfect condition)
  • non-standard constructions (When the property you want is a little out of the ordinary)
  • normal brick-built houses, flats and maisonettes
  • properties where more than 40% will be owner occupied

We are independently reviewed by our verified customers and web users:
Rating: 4.6 / 5 with 27 votes

Lending Expert is a credit broker and comparison website, we're not a lender.

We bring together the very best financial providers and products from across the market place.

Warning: Late repayment can cause you serious money problems.
For help, go to moneyadviceservice.org.uk