The UK's largest range of secured loans
- Loans from £1,000 to £2,500,000
- See your quote before you apply
- Quote won’t affect your credit score
If you’re looking to borrow money but worried that your credit rating may get in the way, a secured loan could be your best option. By using your house as collateral against the loan, you’re more likely to be approved, even if you have bad credit.
If you don’t own a home, you may want to consider a bad credit personal loan.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
A secured loan lets you use your home as collateral against the cost of the loan. Also known as a “homeowner loan” or “second charge mortgage”, a secured loan will also generally offer a more competitive rate than an unsecured loan.
In the event that you fail to repay your loan, the lender can take ownership of the equity you have in your home.
Putting up security can help borrowers with adverse credit to access a wider selection of loans. As well as making it easier to get approved, applying with the back-up of the equity in a home can help applicants to access larger sums and/or lower rates.
Because lenders have the reassurance that they’re less likely to lose their money, your credit rating becomes a less crucial factor in the approval process. What’s still crucial, however, is that you can comfortably afford the monthly repayments.
Yes, almost certainly. However many secured loan companies will put less of a focus on your credit score – with some even touting secured loans with “no credit scoring”. In reality this means that the lender will base its decision (at least in part) on your credit history. For example, when it looks at your history of payments in the last 12 months, if you’ve missed one payment that might be fine, but if you’ve missed two you might be declined.
Most lenders can use a “soft search” (a credit check that doesn’t impact your credit score or leave a footprint visible to other lenders) to give you a good idea as to whether or not it’s worth applying.
As with many other types of loan, secured loan interest rates are more often than not tailored to the individual applicant’s circumstances. In other words, if your credit file has taken a few bumps along the road, you might be offered a slightly higher rate than the lender’s marketed rates.
In theory yes, you may be able to use another form of collateral with certain secured loans. However, many lenders will only consider customers looking to use the equity in their house as security.
As with any loan, there are a number of eligibility criteria you will need to meet in order to be considered for a loan. Criteria vary from lender to lender, but as an absolute minimum you’ll need to be:
If you don’t qualify for a secured loan or don’t want to use the equity in your house, you still have a couple of other options:
Unsecured loans with bad credit. You may be able to get an unsecured loan with bad credit, but you will likely receive a much higher rate. The maximum amount you can borrow will also be much lower than on a secured loan.
Guarantor loan. By using a friend or family member as a guarantor on your loan, you’ll be able to reduce the risk you represent to the lender, which means you are more likely to be approved for a loan.
Credit builder credit cards. One way to improve your credit score is by using a credit-building credit card. If you can show a credit provider that you can responsibly manage your credit account, you’ll be able to improve your credit and make yourself more likely to be approved for a loan.
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