Secured Loan Rates from 6%

A secured loan is a way of raising funds using security and assets you own. Lenders offer secured loans based on the value of the borrower’s assets.

Secured loans are also known as homeowner loans or 2nd charge mortgages, which provide additional funding without affecting a current first-charge mortgage. Homeowner loans usually start at £20,000 and are set up by using the equity in your property.

When would you need a secured loan?


  • Larger loan amounts: Secured finance provides funding in excess of £20,000, which is the typical maximum amount available to borrowers when applying for a personal loan.
  • Longer loan terms: A secured loan is very much like a traditional mortgage when it comes to the loan term. The long-term nature of this type of financing means that the cost is spread, making the loan more affordable. Borrowers will be assessed against certain criteria, such as the expected time of retirement and proof of income.
  • Access to more funds than with traditional mortgages: Most lenders offering secured loans will use higher loan-to-value rates and/or higher income multiples, meaning that borrowers will be able to apply for higher amounts of cash.
  • Lower rates: Compared to certain other types of finance, such as credit cards and certain personal loans
  • Secured finance permits you to keep your existing low-rate mortgage product.
  • A cheaper alternative to remortgaging: You may be tied to your mortgage product and have high exit charges.

Secured Loans Tip: For peace of mind, why not let us provide a free, no-obligation quote showing the best products available?

Whether you are considering an application for a second mortgage, a business loan, or a specialist secured loan, the following checklist will help ensure a smooth and seamless process from start to finish:

Examine your credit report

Check your current credit score with the three primary credit reference agencies (CRAs) in the UK: Equifax, Experian, and

It is worth noting that with many types of specialist-secured loans, security is more important than a flawless credit history.

Calculate the equity you have tied up in your home

If you have a mortgage on your home or business property, you technically only own a portion of it. This is referred to as ‘equity’.

Working out how much you will be able to borrow against your property means doing the following basic math:

  • Take the current value of your property, which will usually mean arranging an independent valuation.
  • Contact your lender to find out how much you still owe on your mortgage.
  • Subtract your remaining mortgage balance from the market value of your property to determine how much equity you have in your home.

Compare the market for a great deal

Secured loan comparison sites don’t always paint an accurate picture of the options available. To ensure you get the best possible deal on your secured loan, it is advisable to consult with an independent broker at the earliest possible stage.

Some of the best deals on specialist secured loans are not available on the UK High Street, and independent lenders and smaller banks may be accessible exclusively via an established and reputable broker.

Consider your long-term budget

Calculating affordability means taking into account all your current and potential future outgoings. It is vital to calculate whether you will be able to meet repayment obligations on a long-term basis.

Decide how much you need to borrow

Likewise, secured loan specialists are often unwilling to issue loans for more than the applicant needs.

Consider early repayment options

Some lenders actively encourage early repayment, incentivising borrowers with exceptionally low borrowing costs to repay their debts as quickly as possible. By contrast, others impose significant fees and penalties on those who repay their debts early.

This is something to consider before applying, as there is always the chance you will decide to repay your secured loan (in full or in part) at a date earlier than initially agreed. The availability or otherwise of the early repayment option is best discussed with an independent broker, who will advise you as to the flexibility of the secured loan before applying.

Supporting documentation and evidence

You will be required to provide various documents and forms of financial evidence to support your application. Examples of this could include proof of income, information on your current mortgage outgoings, and documents formalising the market value of your property.

Requirements differ from one lender to the next, but all applications must be submitted with sufficient documentation. This is also something to discuss with your broker before applying, as failure to provide the required evidence to support your application will result in its immediate refusal.

As everyone’s individual circumstances vary, it is very important that the decision to borrow any money be made after careful consideration. As the loan is secured against your property, it may be at risk of being repossessed if regular payments are not maintained.

It might be prudent to take out an insurance policy to protect the homeowner loan in the event of illness or redundancy.