Secured Loans

Secured loans, also known as homeowner loans or collateral loans provide a way to borrow large sums of money using the equity of your home as collateral against your repayments. Find the lowest rate on loans between £1,000 to £2,500,000 from the UK's largest range of secured loans.

We have chosen Loans Warehouse to offer a whole of market secured loans service.

Compare Secured Loan Providers

Light Adverse Secured Loan
Headline Rate

4.70%

Max LTV

65%

Loan Min Amount

£15000

Loan Max Amount

£50000

Min Term Amount

5 Years

Max Term Amount

25 Years

Representative Example: The representative APRC is 6.2% (variable) so if you borrow £40,000 over 13 years at a rate of 4.7% (variable) you will repay £370.14 per month & total amount payable £57,741.63.
Flexible Secured Loan
Headline Rate

4.74%

Max LTV

70%

Loan Min Amount

£10000

Loan Max Amount

£500000

Min Term Amount

3 Years

Max Term Amount

35 Years

Representative Example: The representative APRC is 6.2% (variable) so if you borrow £40,000 over 13 years at a rate of 4.74% (variable) you will repay £371.05 per month & total amount payable £57,883.82.
Light Adverse Secured Loan
Headline Rate

4.75%

Max LTV

70%

Loan Min Amount

£15000

Loan Max Amount

£100000

Min Term Amount

5 Years

Max Term Amount

25 Years

Representative Example: The representative APRC is 6.4% (variable) so if you borrow £40,000 over 13 years at a rate of 4.75% (variable) you will repay £374.67 per month & total amount payable £58,447.92.
Variable Secured Loan
Headline Rate

4.80%

Max LTV

75%

Loan Min Amount

£10000

Loan Max Amount

£200000

Min Term Amount

3 Years

Max Term Amount

25 Years

Representative Example: The representative APRC is 6.4% (variable) so if you borrow £40,000 over 13 years at a rate of 4.8% (variable) you will repay £373.91 per month & total amount payable £58,329.74.
Second Charge Loan Product
Headline Rate

4.90%

Max LTV

75%

Loan Min Amount

£10000

Loan Max Amount

£125000

Min Term Amount

3 Years

Max Term Amount

30 Years

Representative Example: The representative APRC is 6.5% (variable) so if you borrow £40,000 over 13 years at a rate of 4.9% (variable) you will repay £375.80 per month & total amount payable £58,624.04.
Flexible Secured Loan
Headline Rate

4.94%

Max LTV

75%

Loan Min Amount

£10000

Loan Max Amount

£350000

Min Term Amount

3 Years

Max Term Amount

35 Years

Representative Example: The representative APRC is 6.4% (variable) so if you borrow £40,000 over 13 years at a rate of 4.94% (variable) you will repay £375.41 per month & total amount payable £58,564.14.
Prime Rate Secured Loan
Headline Rate

4.95%

Max LTV

75%

Loan Min Amount

£20000

Loan Max Amount

£250000

Min Term Amount

5 Years

Max Term Amount

25 Years

Representative Example: The representative APRC is 6.6% (variable) so if you borrow £40,000 over 13 years at a rate of 4.95% (variable) you will repay £379.07 per month & total amount payable £59,134.69.
Light Adverse Secured Loan
Headline Rate

5.00%

Max LTV

70%

Loan Min Amount

£15000

Loan Max Amount

£100000

Min Term Amount

5 Years

Max Term Amount

25 Years

Representative Example: The representative APRC is 6.5% (variable) so if you borrow £40,000 over 13 years at a rate of 5% (variable) you will repay £376.68 per month & total amount payable £58,762.33.
Variable Secured Loan
Headline Rate

5.00%

Max LTV

75%

Loan Min Amount

£10000

Loan Max Amount

£100000

Min Term Amount

3 Years

Max Term Amount

25 Years

Representative Example: The representative APRC is 6.4% (variable) so if you borrow £40,000 over 13 years at a rate of 5% (variable) you will repay £373.98 per month & total amount payable £58,340.12.
Platinum Secured Loan
Headline Rate

5.05%

Max LTV

75%

Loan Min Amount

£10000

Loan Max Amount

£2500000

Min Term Amount

3 Years

Max Term Amount

25 Years

Representative Example: The representative APRC is 6.6% (variable) so if you borrow £40,000 over 13 years at a rate of 5.05% (variable) you will repay £379.14 per month & total amount payable £59,145.18.
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The table above shows secured loans in rate order. You can click on the column headings to reorder the table. Moneyfacts.co.uk shows whole of market secured loans information. We will refer you to Loans Warehouse, an independent credit broker authorised and regulated by the Financial Conduct Authority. They will source the most appropriate secured loan based on your circumstances and any legal or contractual relationship will be with them.

Disclaimer: THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOAN SECURED ON IT. Loans are subject to status and valuation, secured on residential property and not available to those under 18. The APRC quoted will be offered to a majority of applicants. You may be offered a higher rate depending on your personal circumstances. All rates and terms may change without notice so please check with Loans Warehouse before undertaking any borrowing.

Moneyfacts.co.uk Limited is an independent credit broker not a lender and will receive a payment from Loans Warehouse where customers take a loan following a link to them from Moneyfacts.co.uk. This arrangement does not affect our independence.

If you're looking for the best secured loans, it's important to have as much information as you can. To help, we've strived to answer the most common questions you may have when it comes to secured loans, starting with the basics.

On this Page

  1. What is a secured loan or homeowner loan?
  2. How to get the best deal on a secured loan
  3. What to consider when comparing homeowner loans
  4. Secured loans for bad credit
  5. Benefits of a secured loan
  6. What are the risks, and how can you minimise them?

What is a secured loan or homeowner loan?

As with any loan, secured loans allow you to borrow a lump sum of money that you will then need to pay back with interest. Secured loans, sometimes referred to as homeowner loans, differ from unsecured loans because they require you to put up collateral against the loan.

This will most often be your house (hence the name homeowner loan), but it could also be your car or another expensive asset. While this may be more risky for you than an unsecured loan, since there's the possibility that you could lose your house (or other asset) if you fail to keep up with repayments, the flipside of this is that you can borrow more money than you would be able to with an unsecured loan.

A secured loan is generally meant for people who are already homeowners and are looking to borrow a significant sum for something else, such as a big renovation, a new car, a wedding, or anything else that requires funds of generally £25,000 or more (though there are secured loans available for less than this amount). Note that while it is possible to take out a secured loan on a property you are renting out, it is not possible to apply for a secured loan if you are not the sole owner of the property you would like to use as security.

Now, you may be asking yourself if a mortgage technically counts as a secured loan, since you're also putting up your home at risk of repossession in order to secure the loan to be able to buy it in the first place, and you'd be correct. That's why secured loans are sometimes referred to as second mortgages or second charge mortgages, with the initial mortgage that allows you to buy your house referred to as the first charge mortgage.

How to get the best deal on a secured loan

Homeowner loans tend to be a lot more complex than other types of loans. That's why it's so important to do your research and compare secured loans before committing to any of the loans mentioned in the chart above, all of which require your home to be put up as the collateral.

There's no single best loan out there, with a lot of it depending on what your personal requirements are. How much are you looking to borrow, and over what term? How much equity do you have to offer? Are you happy with a variable rate loan or would you prefer the security of a fixed rate? There are many different secured loans available in the UK, so asking yourself these questions is an important first step in determining what your personal best loan could be.

Speaking to an expert such as Moneyfact's preferred broker can help you answer some of these questions, especially if as they have access to the whole secured loans market. They will be able to help you compare secured loans on the criteria that matter to you, which should enable you to go after the most suitable loan with greater confidence.

Before you do, it wouldn't hurt to make sure your credit rating is as good as it can be before you apply for a loan, as this will help you get a better rate (remember that the rates on display are not always the rate that you will be offered, depending on your circumstances). However, you don't necessarily have to have a good credit score to be eligible, as secured loans can be a life-saver for those with bad credit.

What to consider when comparing homeowner loans

If you're not sure what loan to apply for, and you're not in a position to talk to an independent adviser, or you'd rather go it alone, there are a few key things to take into account when you compare secured loans:

  1. The rate and fee. Sometimes a secured loan may seem attractive due to its low rate, but if it comes with a large fee then that could cancel out the savings you would have made compared to a loan with a slightly higher rate but lower (or no) fee.
  2. The term of the loan. The shorter the term, the higher your monthly repayments are likely to be, but also the sooner you will be able to repay the whole loan. If you're not confident you'll be able to repay it in the minimum term offered by the loan provider, a longer term with lower monthly repayments might be a safer bet.
  3. Fixed or variable? It is easy to see in the chart above which loans are variable and which offer fixed rates. While variable rate secured loans may offer lower rates, they are also less predictable. Your monthly repayments may go down with a variable rate, but it's equally as likely – if not more so – that they will go up, so you should be prepared with a buffer in place.
  4. The provider. While all providers should be subject to the same regulation, and therefore one should not be more risky than another, everyone will have their own preferences, including when it comes to how the provider chooses to communicate with you. If you think a provider is not a good fit, don't feel pressured to continue with them.

The criteria, much like the loan amount, can often come down to personal preference and circumstances. What is not up for debate is how much you have to offer. In the chart above you will see the Max LTV mentioned, which refers to the loan-to-value of your current mortgage combined with the value of the second charge mortgage on offer, assuming you're putting up your house as the security for the loan. Generally speaking, the lower your loan-to-value is, the better a loan you can get. Just like with regular first charge mortgages, a low loan-to-value marks you as being less risky to the secured loan provider.

That's not to say that loan providers won't offer secured homeowner loans to those they deem more risky. Indeed, next to home improvements, one of the most common uses of a secured loan is to consolidate an unwieldy amount of debt.

Secured loans for bad credit

The reason why secured loans are more available to those who are dealing with bad credit goes back to the major difference between secured and unsecured loans. Because you put up an asset as collateral against the loan, it is easier for loan providers to take the (lesser) risk. Instead, you take on the majority of the risk, as there's the possibility that you could lose your home if you are unable to repay the loan.

As someone with bad credit, you may not be able to get the best secured loan, or indeed the rate as it is advertised, but if your only option is to borrow money, then a secured loan would be a better option than an unsecured one. For one, loan providers such as our preferred broker tend not to start with a credit check, which means you can enquire about secured loans without immediately risking your credit score being damaged further.

If you are considering a homeowner loan to consolidate debt, just remember that it may take you longer to repay your credit than it did before you consolidated, and indeed that you may end up paying more. With a history of debt, it's imperative that you budget well and are absolutely certain that you can make your repayments each month, with some room to breathe in case something happens or the variable rate goes up. The last thing you want when you're dealing with debt is to find yourself being forced to sell your house.

No matter your situation or the reason for your loan, it's always important to compare the market and not pick the first deal that catches your eye. There are many details that need to be taken into account, and a little searching could potentially save you a lot of extra money in interest payments.

Benefits of a secured loan

Aside from helping you get out of debt and/or improve your credit rating, there are plenty of benefits to secured loans that could outweigh the risk of possibly losing your house, as long as you are diligent and carefully compare the secured loans market before you decide.

A big benefit we've already mentioned is the ability to secure much bigger funds with a homeowner loan. Another important benefit is that you will generally be able to get lower interest rates. The reason for this is that lenders will feel more secure lending at lower rates, given that they would be able to take payment from the asset if you are unable to pay them back yourself.

Of course, as mentioned, the rates that you are able to get will depend on your credit rating as well as how savvy you are about finding the best deal out there for your requirements. We also need to point out that a period of unequal competition in the different loan markets can mean that the top interest rates will not be found in the secured loans market, but rather the unsecured loans market, which is why you should always compare loans for yourself.

What are the risks, and how can you minimise them?

The main risk that comes with a secured homeowner loan is similar to the risk that comes with taking out a mortgage; if you fail to keep up with repayments, you risk the asset that you've used to secure the loan being repossessed, which means in an extreme case you could end up losing your house, even if you are keeping up with your regular mortgage payments.

To minimise this risk, you should never take on such a loan if you are not sure you will be able to keep up with the monthly repayments. Make a budget, calculate your monthly expenses, and give yourself a decent margin in case of unforeseen circumstances. This is especially important if you want to take out a variable rate secured loan, given that these rates can go up as well as down.

If you're taking out the loan to complete home improvements, you should do a thorough risk assessment, as renovation projects can often get delayed or otherwise end up more costly than anticipated. Ask yourself how delays would affect your living and financial situation, and specify with your contractor how extra costs will be dealt with before taking out the loan.

Luckily, secured homeowner loans are regulated by the Financial Conduct Authority, the UK's financial regulator, so lenders should require you to show that you will be able to repay the money before they will lend to you.

Still, remember to compare secured loans on more than simply the rate and the amount you are able to borrow, as you wouldn't want to find that either your monthly repayments go up unexpectedly or you have a shorter term than you'd thought to repay the loan.

For more information on secured loans, or any other type of loans, check out our loan guides.