100% Recommend

Expertly compared by Simon Nicholson

Products Updated February 26, 2022

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.

11 providers expertly compared:

Learn More Available via broker only

Paragon Bank

Loan Amount
£20,000 - £500,000

Initial Rate
3.6%

Loan Term
5 - 25 years

Loan Type
Residential
& Buy to let

Status
Homeowners Only
Max LTV 85%

Rated 5.0/ 5

All credit types

Your monthly payment will be:

£169.35

Interest on this loan will be:

£18,805

Initial Rate:

3.6%

Total repaid will be:

£50,805

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.

11 providers expertly compared:

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Masthaven Bank

Loan Amount
£10,000 - £500,000

Initial Rate
4.19%

Loan Term
5 - 35 years

Loan Type
Residential
& Buy to let

Status
Homeowners Only
Max LTV 75%

Rated 5.0/ 5

All credit types

Your monthly payment will be:

£169.35

Interest on this loan will be:

£18,805

Initial Rate:

4.19%

Total repaid will be:

£50,805

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.

11 providers expertly compared:

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United Trust Bank

Loan Amount
£10,000 - £125,000

Initial Rate
4.45%

Loan Term
3 - 30 years

Loan Type
Residential
& Buy to let

Status
Homeowners Only
Max LTV 85%

Rated 5.0/ 5

All credit types

Your monthly payment will be:

£169.35

Interest on this loan will be:

£18,805

Initial Rate:

4.45%

Total repaid will be:

£50,805

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.

11 providers expertly compared:

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Shawbrook Bank

Loan Amount
£10,000 - £500,000

Initial Rate
4.2%

Loan Term
3 - 25 years

Loan Type
Residential
& Buy to Let

Status
Homeowners Only
Max LTV 90%

Rated 5.0/ 5

All credit types

Your monthly payment will be:

£169.35

Interest on this loan will be:

£18,805

Initial Rate:

4.2%

Total repaid will be:

£50,805

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.

11 providers expertly compared:

Learn More Available via broker only

Step One Finance

Loan Amount
£5,000 - £500,000

Initial Rate
6.9%

Loan Term
5 - 30 years

Loan Type
Residential
& Buy to Let

Status
Homeowners Only
Max LTV 95%

Rated 5.0/ 5

All credit types

Your monthly payment will be:

£169.35

Interest on this loan will be:

£18,805

Initial Rate:

6.9%

Total repaid will be:

£50,805

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.

11 providers expertly compared:

Learn More Available via broker only

Together Money

Loan Amount
£3,000 - £1,000,000

Initial Rate
6.65%

Loan Term
3 - 30 years

Loan Type
Residential
& Buy to Let

Status
Homeowners Only
Max LTV 77.5%

Rated 5.0/ 5

All credit types

Your monthly payment will be:

£169.35

Interest on this loan will be:

£18,805

Initial Rate:

6.65%

Total repaid will be:

£50,805

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.

11 providers expertly compared:

Learn More Available via broker only

Central Trust

Loan Amount
£3,000 - £250,000

Initial Rate
8.5%

Loan Term
3 - 30 years

Loan Type
Residential
& Buy to Let

Status
Homeowners Only
Max LTV 75%

Rated 5.0/ 5

All credit types

Your monthly payment will be:

£169.35

Interest on this loan will be:

£18,805

Initial Rate:

8.5%

Total repaid will be:

£50,805

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.

11 providers expertly compared:

Learn More Available via broker only

Optimum Credit

Loan Amount
£5,000 - £500,000

Initial Rate
4%

Loan Term
3 - 25 years

Loan Type
Residential
& Buy to Let

Status
Homeowners Only
Max LTV 85%

Rated 5.0/ 5

All credit types

Your monthly payment will be:

£169.35

Interest on this loan will be:

£18,805

Initial Rate:

4%

Total repaid will be:

£50,805

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.

11 providers expertly compared:

Learn More Available via broker only

Oplo

Loan Amount
£5,000 - £50,000

Initial Rate
8.0%

Loan Term
3 - 25 years

Loan Type
Residential
& Buy to Let

Status
Homeowners Only
Max LTV 70%

Rated 5.0/ 5

All credit types

Your monthly payment will be:

£169.35

Interest on this loan will be:

£18,805

Initial Rate:

8.0%

Total repaid will be:

£50,805

Here at Oplo 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

11 providers expertly compared:

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Evolution Money

Loan Amount
£1,000 - £20,000

Initial Rate
10.20%

Loan Term
1 - 15 years

Loan Type
Residential
& Buy to Let

Status
Homeowners Only
Max LTV 95%

Rated 5.0/ 5

All credit types

Your monthly payment will be:

£169.35

Interest on this loan will be:

£18,805

Initial Rate:

10.20%

Total repaid will be:

£50,805

We won’t rely on automated credit scores. At Evolution Money, people take the decisions and they look at you, not your credit history or the amount of equity in your home. Get a quote today for a personal illustration from our award winning broker.

11 providers expertly compared:

Learn More Available via broker only

West One Secured Loans

Loan Amount
£10,000 - £500,000

Initial Rate
3.99%

Loan Term
3 - 25 years

Loan Type
Residential
& Buy to Let

Status
Homeowners Only
Max LTV 85%

Rated 5.0/ 5

All credit types

Your monthly payment will be:

£169.35

Interest on this loan will be:

£18,805

Initial Rate:

3.99%

Total repaid will be:

£50,805

West One offers an extensive range of second charge mortgage solutions that can be secured on buy-to-let properties, including unregulated buy-to-lets as well as regulated consumer buy-to-lets. Get a quote today for a personal illustration from our award winning broker.

Check My Eligibility
Application Criteria?

Application criteria for this product is:

  • Homeowners Only:

Read our customer and visitor reviews for this product:

Rating: 4.6 / 5 with 31 votes

Good for secured loans

by Abdul R

Good service for secured loans with a full brokerage service. Good panel of lenders to suit most customers.

Found the right mortgage I was looking for

by Mrs Dale

Had a very positive experience using the mortgage pages. Thankyou.

Loans displayed have a minimum term of 12 months and a maximum term of 360 months. Maximum APRC charged 49.9%.

 

Overall Representative Example for Secured Loans

 

Based on borrowing £18,000 over 120 months. Interest Rate: 6.5% fixed for 60 months with instalments of £227.38. Followed by 60 months at the lenders standard variable rate of 4.95% with instalments of £221.71. Fees Broker fee (£1,530); Lender fee (£495). Total amount payable £26,945.40 comprised of; loan amount (£18,000); interest (£6,920.40); Broker fee and Lender fee. Overall cost of comparison 9.1% APRC.

 

Can I get A Secured Loan With Bad Credit?

Yes, you can get a secured loan with a bad credit history – and this is often a popular choice if you have been declined for a traditional unsecured loan.

With a secured loan, a lot of the eligibility is based on what you are using as security or collateral, such as your home or property – and less so your income and credit score.

So even though you have a history of missed repayments, arrears or defaults, because your loan is secured against a property, the lender always knows that they can repossess that property to recover any potential losses.

Using a secured loans broker could be useful if you are looking for a loan with bad credit and some lenders only operate via brokers. A broker will run a soft credit search and give you an indication of what you can borrow and at what rates, saving you a lot of time and effort.

For a free and no obligation quote, you can check your eligibility in less than 5 minutes with Lender Expert today >>

 

Check My Eligibility

 

How Can I Get a Secured Loan with Bad Credit?

There are a number of secured lenders in the UK that specialise in offering loans to people with bad credit including CCJs, IVAs, arrears and defaults – and their loan rates and amounts are adjusted to cater to people with different credit backgrounds.

 

“Loan rates and amounts are adjusted to cater to people with different credit backgrounds”

 

Using your property as security is very valuable to lenders, since property typically increases in value over time.

So if you are unable to keep up with repayments and the lender has tried to give you loan extensions or payment holidays and this has not sufficed, they will have the right to claim ownership of your property and sell this on the open market to recover their costs.

 

Does a Secured Loan Require a Good Credit Score?

No, a secured loan does not need a good credit score to be approved. Your eligibility is largely based on what you are putting up as collateral which is most likely to be a property, flat or home (see second charge loans) and in some cases a vehicle such as a car, bike or van (see logbook loans).

The more valuable your property is and the more equity that you have in it will certainly help your application.

Every secured lender is different and some may run a credit check on you and some may not. But there might be credit checking to confirm that you have not recently been declared bankrupt or have any other reasons why you may struggle to repay your loan.

There are other factors involved to ensure that you can afford to repay the loan such as having a stable income, not too many outstanding debts and a valuable property.

 

What Other Factors Are Taking Into Consideration When Applying for a Secured Loan?

 

Value of your property – Having a valuable property is key to get your secured loan approved, especially if you are up to date with mortgage repayments. You will need to be a homeowner and not a tenant (see tenant loans for more information). The property will usually be subject to a survey and should be in good condition and able to hold its value or increase over time.

Equity in your property – The more equity that you have in your property, the better. This assumes that you have been paying off your mortgage for several years and is a good trust indicator. It also shows that you have less debt outstanding and could always sell the property to raise funds.

Your income – With a stable income and employment, you should be in a good financial position to make monthly repayments. You may need to show proof of income via a payslip or bank statement, but this is something that is taken into account for secured loans and all other kinds of loans and credit cards too.

Your outstanding debts – A secured lender will consider your outstanding debts and affordability for a loan. If you are overwhelmed with other financial liabilities including a mortgage, cars, school fees and more – this could influence your ability to repay your loan and your eligibility.

 

Will My Loan Be More Expensive if I Have Bad Credit?

Yes, typically having bad credit will make your loan more costly as lenders need to manage the potential risk of default or not paying back your loan.

So whilst the starting rates for secured loans is around 3.34% APRC, this is likely to be somewhat higher if you have an adverse credit history.

But this could be mitigated if you have other strong characteristics such as a stable income, employment, valuable property and solid equity in that property.

Use the secured loan calculator to get an estimate of the monthly payments and interest charges depending on how much you wish to borrow.

 

What Are The Risks of Getting a Secured Loan for Bad Credit?

The biggest risk of getting a secured loan with a bad credit history is that your valuable security is always potentially at risk if you do not keep up with repayments. If you are using your family home or residence as the main form of security, you could potentially lose this and be without a home if you do not keep up with repayments.

There are always personal and financial situations that arise and getting a bad credit history is sometimes unavoidable. But in the case of a secured loan, you need to be 100% certain that you can make all repayments or you could find yourself losing your treasured home.

 

How Can I Check My Eligibility for a Secured Loan with Bad Credit?

You can check your eligibility for free with Lending Expert and acting as a broker, we will be able to compare offers across a number of secured lenders in the UK, with bad credit histories taking into consideration.

Enter your details in less than 5 minutes and our team will come back to you with a list of competitive options. It is completely free to apply and we only charge a broker fee if your secured loan is approved and funded. Simply check your eligibility below!

 

Check My Eligibility

 

FAQ

Loans can be completed within a matter of a few weeks assuming all the application and supporting documents are provided quickly.

Yes, as these types of loans are secured against your home in the same way a mortgage is. They are often referred to as a second charge loan or homeowner loans.

No, there are no up front fees to pay. However, there is a broker fee and lender fees to pay upon completion of the loan. In most cases there is also a home survey/valuation fee to pay in addition to the broker and lender fee. These fees and the amount to pay will be explained to your prior to taking out an application.

Yes, bad credit secured loans can be taken out on buy to let property.

There are many alternatives to secured loans if you do not want to risk using your property as collateral. There are unsecured loans if you prefer to borrow money without your house at risk - and your eligibility will be based on your income and credit score. In addition, you can consider a guarantor loan whereby you have an extra person you know to act as your guarantor and agree to cover your repayments if you cannot.

The amount you can borrow will depend on factors such as home equity and affordability. A quick assessment from a secured loan broker will be able to establish how much you are able to borrow and how much the loan will cost.

A secured loan has many benefits over a remortgage and in many cases will be the best solution such as: If your credit rating has worsened since taking out your first mortgage, remortgaging could mean you end up paying more interest on your entire mortgage, rather than just on the extra amount you wish to borrow. If your existing mortgage has a high early repayment charge (ERC), it may be cheaper for you to take out a second charge mortgage rather than to remortgage.

Yes. If you are self employed either as a sole trader or company director you can apply for a second charge loan. You must have a minimum of 6 months of trading and be able to provide proof of income.

No. You will be required to show proof of suitable income to demonstrate you can afford the loan repayments. SA302 and accountants projection accepted as proof of income for self employed applicants.

Any legal purpose such as debt consolidation, home improvements, tax bills, business use or to purcase a new car for example.

Loans can be arranged up to 100%, and 95% LTV loan to value with a small handful of lenders. The lower the LTV the more attractive the interest rates and fees are.

Our lenders do accept CCJs and Defaults (even in the last 12 months) If you have a bad credit history then there are a selection of second charge lenders who offer loans within this category. Your secured loan broker will be best to advise you on which lenders and products will be available and the interest rates chargable.

Second charge loans are like mortgages and loan terms can arranged up to 35 years for some lenders while others will have a maximum loan period of 25 years for example.

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

Yes and no, not all products on offer here will come with ERC's. The broker will be best to advise on the individual lender products and which ones carry early repayment charges.

Yes.

Rates for secured loans start from 3.34% APRC, with the rates charged dependent on factors such as income, outstanding debt, credit score, value of your property and equity in your home. Additional fees may apply including broker, arrangement, valuation and solicitor fees - especially for borrowing large amounts.

Yes. Debt consolidation is a popular option with many customers who take out these types of loans. If you would like to learn more then request a quote from our approved brokers here on the website.

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