Short term secured loans

A short term secured loan can give you the double benefit of lower rates and smaller interest payments.

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
Your home may be repossessed if you do not keep up repayments on your mortgage or any other loan secured on it.

Compare short term secured loans

Table: sorted by overall cost for comparison (representative APRC)
Name Product Maximum LTV Loan amounts Minimum term Overall cost for comparison
United Trust Bank Ltd 1st Charge BTL Limited
65%
£50,000 to £1,500,000
3 years
6.6% APRC
United Trust Bank Ltd 1st Charge BTL Limited
70%
£50,000 to £1,000,000
3 years
6.6% APRC
Pepper Money Prime Rate Secured Loan
60%
£7,500 to £350,000
3 years
7.4% APRC
United Trust Bank Ltd 1st Charge BTL Standard
75%
£50,000 to £1,000,000
3 years
7.5% APRC
Pepper Money Prime Rate Secured Loan
65%
£7,500 to £1,000,000
3 years
7.6% APRC
Pepper Money Prime Rate Secured Loan
60%
£7,500 to £1,000,000
3 years
7.6% APRC
United Trust Bank Ltd 1st Charge BTL Limited
65%
£50,000 to £1,500,000
3 years
7.6% APRC
United Trust Bank Ltd 1st Charge BTL Standard
70%
£50,000 to £1,000,000
3 years
7.6% APRC
Pepper Money Prime Rate Secured Loan
60%
£7,500 to £200,000
3 years
7.8% APRC
United Trust Bank Ltd 1st Charge BTL Limited
70%
£50,000 to £1,000,000
3 years
7.8% APRC
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Overall representative example
If you borrow £43,000 over 16 years at a rate of 10.25% variable, you will pay 192 instalments of £505.18 per month and a total amount payable of £96,994.56. This includes the net loan, interest of £49,404.56, a broker fee of £3,995 and a lender fee of £595. The overall cost for comparison is 12.7% APRC variable.

What is a short term secured loan?

A short term secured loan lets you use the equity you have in your home as security against the loan’s cost, but you’ll pay off the loan within a couple of years.

While regular personal loans generally offer loan terms of 1 to 5 years, secured loans can have terms of up to 20 or 30 years. A short-term secured loan is, therefore, any loan that requires you to use security but has a loan term of 1 to 5 years, in line with an unsecured personal loan.

Pros and cons of short term secured loans

Pros

  • Better rate. You’ll generally get a lower interest rate on a secured loan than you would with an unsecured personal loan.
  • Lower cost. The shorter your loan term, the less you’ll pay in overall interest. This means that a short term secured loan will cost less than the equivalent long term secured loan. Depending on how much you borrow, the difference could be hundreds or thousands of pounds.
  • You’ll be out of debt more quickly. If you continue to make your monthly repayments, you can pay off the loan faster. This will also likely improve your credit score by demonstrating to lenders that you can handle debt, which means you may receive more favourable terms if you take out another loan in the future.

Cons

  • Higher repayments. As you’ll have less time to pay off the loan amount, the size of your monthly repayments will be higher than they would be on a loan with a longer term. This may make it harder to afford the loan’s cost.
  • Your equity is at risk. With a secured loan, the asset you use as collateral may be lost if you don’t repay the loan on time.
  • Limited availability. To qualify for a short term secured loan, you’ll need to have access to home equity (or another asset) that you’re willing to use as security. If not, you won’t be able to apply.
  • Fewer loan options. While most lenders offer unsecured personal loans, it’s generally only specialist lenders that provide secured loans. This means you’ll be limited in the loans you can apply for.

Can I get a short term secured loan with no credit check?

Before you’re approved for a secured loan, the lender needs to perform a credit check to determine the likelihood that you will repay your loan. If you’re looking for a short loan with no credit check, you may want to consider a short term payday loan.

However, it’s worth keeping in mind that payday loans are the most expensive type of loan and can often cause financial stress if you can’t pay the loan off on time. You’ll also be limited in your choice of lenders and how much you can borrow with a payday loan.

Can I get approved if I have bad credit?

Yes, you can still get a secured short term loan with bad credit, though you’ll likely receive a less favourable rate and loan terms compared to someone with a good credit score.

What are my other short term loan options?

You may also want to consider an unsecured personal loan if you’re looking for a loan with shorter terms. You’ll likely receive a slightly higher rate than you would on a secured loan but do not need to risk an asset as security against the loan.

Bottom line

As with all secured loans, the asset you put up against the loan is at risk. Should you default on the loan, your asset, such as your house, would be repossessed. Whilst you may have a higher chance of getting a secured loan with bad credit, provided you can put up a suitable asset as collateral, you should only take one out if you’re sure you can make the repayments.

Frequently asked questions

We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you. Most of the data in Finder's comparison tables is provided by Moneyfacts.

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