Simon Nicholson

Experly compared by Simon Nicholson

Products Updated May 23, 2018

Secured Debt Consolidation Loans

If you need a homeowner loan to consolidate some of your more expensive loans and debts then our award winning experts can help. They will compare all the lenders who offer debt consolidation loans to find you the best deal at the lowest rates. Rates available for all credit types and self employed applicants.

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

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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. Smart Money are not available direct to the public and so we are very pleased to be able to offer them here via Lending Expert.

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

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

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

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

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

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

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

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
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
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

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 you need to know about secured loans for debt consolidation

What you need to know about debt consolidation

What you need to know about debt consolidation

The economic climate means that many people are in a position where they have some sort of debt that they are trying to pay off. There are a lot of possible options out there from payday loans to guarantor loans as unsecured loans to secured loans taken out against your car or your home. While you may be desperate to consolidate your loans as soon as you can, you should still take the time to assess all of your options as they are not necessarily completely straightforward.

Get advice from experts

Secured loans for debt consolidation are not right for everyone, but they can throw you a lifeline if you are in a particular type of situation. Debt consolidation advisers and your broker can help you to build up a realistic picture of your current financial situation. They will be able to help you calculate the amount you owe, how much you need to pay each month in order to cut your debts and whether this is affordable for your circumstances. If you need to consolidate a large amount of debt, which could be from around £5000 all the way up to £1,000,000, then consolidating it all into one place could be the option you need.

As a secured loan against your home to consolidate your debts is effectively a type of mortgage you can also consult a second charge broker in order to identify all of the products that would be suitable for you. They will be able to take into account your loan amount, how much you are able to pay in monthly payments each month and so therefore will also be able to advise on a loan term, which could be up to 30 years.

Consolidation Loan Calculator – how much will it cost?

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

Things to think about before taking out a secured debt consolidation loan

As you will be securing the loan against your home, should you miss repayments your home could be at risk of repossession, which means that you would lose your home. You should also understand that because of the length of these loan terms you will pay more overall than if you took out a shorter loan with higher repayments. However if what you need are the lowest monthly payments possible then this type of secured debt consolidation loan is likely to be your best option because they often provide you with the lowest interest rate so your monthly payments are affordable.

Use the loan to your advantage

A more affordable loan over the long term

A more affordable loan over the long term

One of the biggest pros of taking out this type of loan is the fact that you can bring your monthly loan repayments down to an affordable level. If you take advantage of this to its fullest and ensure that you don’t miss any repayments you will not only gradually start to pay your loan off, you also start to rebuild a good credit rating. The more disciplined you are the faster your score will rebuild and you might even find that you can start to save some money, which you could then potentially use to pay off a lump sum of your loan and then you can then use these as factors in the future to then improve your situation even further by potentially getting lower interest rates as you begin to represent a lower risk to lenders.

Why might I be eligible for a secured loan when I don’t qualify for other mainstream loans?

The main reason why you will find more options when looking at a secured loan rather than a personal loan is because of the risk you represent to lenders. A personal loan is unsecured and so because of your poor credit history you present a high risk, whereas if you take out a secured loan the risk drops massively because there is a definite way that a lender can recoup their loan should you run into trouble. However you should also note that this type of secure loan is only available to homeowners and so is not an option for anyone trying to consolidate debts who currently rents their own home.

Check out all of your options

The main piece of advice here is really to check out all of your options and make sure you understand the type of loan you are taking out, especially if you are securing it against your home.

Questions? If you’re unsure which loan is right for you or you need some guidance on secured 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

How is a debt consolidation loan different from a regular loan?

This type of loan is specifically issued in order to pay off and consolidate existing debts. Often the lender will stipulate which debt and existing loans must be repaid and will issue a cheque to that lender so that the loan funds can not be used for any other purpose.

How much can I borrow?

A broker or the lender will assess what debts or existing credit you have and how much of this can be repaid using the consolidation loan. The amount you can borrow will depend on 3 factors. How much home equity is available for the lender to borrow against, the affordability of the loan, and your credit rating or score. This can be quickly calculated by the broker as part of the initial assessment.

Which second charge lenders are available?

The following lenders are available on our panel:

Do I need to show proof of income?

Yes. All second charge lenders on the panel will require adequate proof of income.

Are consolidation loans available to self employed?

Yes. You can take out a debt consolidation loan if you are self employed either as a sole trader, a director or limited company. You will however be required to show adequate proof of income which may be in the form of SA 302 documents or business accounts verified by your accountant.

We are independently reviewed by our verified customers and web users:
Rating: 4.6 / 5 with 25 votes

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Warning: Late repayment can cause you serious money problems.
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