{"id":261453,"date":"2019-11-12T09:31:00","date_gmt":"2019-11-12T09:31:00","guid":{"rendered":"https:\/\/www.finder.com\/uk\/?p=261453"},"modified":"2026-01-28T12:34:39","modified_gmt":"2026-01-28T12:34:39","slug":"secured-debt-consolidation-loans","status":"publish","type":"post","link":"https:\/\/www.finder.com\/uk\/secured-loans\/secured-debt-consolidation-loans","title":{"rendered":"Secured debt consolidation loans"},"content":{"rendered":"
Your home may be repossessed if you do not keep up repayments on your mortgage or any other loan secured on it.<\/div><\/article>

What is a secured debt consolidation loan?<\/h3>

A secured debt consolidation loan (or debt consolidation mortgage) is secured against an asset (usually your home) and used to fold multiple debts into one, with more manageable monthly and\/or overall costs. If you have outstanding loans, credit cards or other debts, it can often be difficult to keep on top of your ongoing repayments. By using a debt consolidation loan, you can merge your current debts and then only need to make repayments on the new loan.<\/p>

Secured loans<\/a> are a form of personal loan that uses the equity you have in your home as security against the cost of the loan. This means that a secured loan represents less risk to the lender than a regular personal loan, so you\u2019re more likely to be approved, and will also potentially get better rates and loan terms. Be aware that if you fail to repay your loan, the lender can take ownership of your equity.<\/p>

Best secured debt consolidation loan rates for April 2026<\/h3>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Rank<\/th>\nProvider<\/th>\nRepresentative APR<\/th>\n<\/tr>\n<\/thead>\n
1<\/th>\nUnited Trust Bank Ltd<\/td>\n5.6%<\/td>\n<\/tr>\n
2<\/th>\nEquifinance<\/td>\n7.2%<\/td>\n<\/tr>\n
3<\/th>\nPepper Money<\/td>\n7.4%<\/td>\n<\/tr>\n
4<\/th>\nTogether<\/td>\n8.5%<\/td>\n<\/tr>\n
5<\/th>\nLoan Logics<\/td>\n14.5%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>

How does a secured debt consolidation loan work?<\/h3>

If you want to use a secured loan<\/a> to consolidate debt, you\u2019ll need to apply for a loan amount that covers the size of your existing debts. Once you\u2019ve been approved for the loan, you can then use the funds to pay off all your existing debts. You then make repayments on the new loan until it has been paid off in full.<\/p>

If possible, you should try to find a secured loan that offers a lower interest rate<\/a> than your existing loans or debts, as this will help you save money on your repayments.<\/p>

Pros and cons of secured debt consolidation loans<\/h3>
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Pros<\/h4>\n