Secured loan for any purpose even if you have bad credit
There are many reasons why you may want to take out a secured loan, including home improvements, investment in another property, a wedding, debt consolidation, holiday or a new car. We have access to a wide range of products and could help to secure you finance no matter what your circumstances.
- Market-leading rates
- Bad credit accepted
- Debt consolidation
- Fast turnaround so you could receive your finance within just a few days
- Dedicated team of experts
A secured loan, also known as a second charge mortgage could be the ideal solution if you:
- Have an existing mortgage with a high early repayment charge
- Want to retain your current mortgage and interest rate
- Fail affordability for a new mortgage
Secured Loan FAQ
If you’re a homeowner and looking to borrow a large sum of money, then a secured loan might be a good option for you. Secured loans allow you to borrow by using your home as the security for your debt. These are a second loan on your property after your mortgage and can be a good personal finance option.
Secured loans – also known as ‘homeowner loans’ or ‘second charge loans’ – are predominantly aimed at homeowners who are unable to get a personal loan elsewhere. This is often due to a non-existent or bad credit rating. These types of loans also work well for homeowners who are looking to borrow significantly more than an unsecured or personal loan can offer.
Secured loans can help fund a number of things including home improvements, holidays but most commonly as a method of consolidating debt.
As your home is used as the security for the debt, secured loans allow you to borrow a much larger amount of money with a lower interest rate in comparison to unsecured loans. However, lenders do consider secured loans to be of greater risk to borrowers than an ordinary bank loan. This is because missed payments can result in the loss of your home.
If you do choose to go down this route you should ensure that you only borrow what you know you can realistically pay back each month.
If you are looking to borrow a smaller loan amount (less than £15,000) then a personal loan might be a safer option for you as you won’t run the risk of the lender reclaiming your home. However, you should be aware that the lender can still put a charge on your property if you fail to make monthly repayments.
The Citizens Advice website provides great information on how charging orders work.
As with any type of loan, there are a number of advantages and disadvantages that you should take into consideration:
Advantages of secured loans
- You don’t need a perfect credit rating.
- Rates can be low, especially when compared to some unsecured personal loans.
- Repayment periods can be longer, giving you more time to repay the loan.
Disadvantages of secured loans
- You coud be at risk of losing your home if you don’t continue to make payments on time.
- Early repayment penalties could increase the cost of the loan.
- Rates can often be higher than a first charge mortgage.
A secured loan gives you the opportunity to borrow money even if you have a bad credit history. This is because decisions for these types of loans aren’t made solely on your credit score. If you are a homeowner, it can be easier to take out a secured loan compared to an unsecured loan or credit card. The total amount you can borrow can be much higher as well as the risk to the lender is lower than other loan types.
Bad credit secured loans
You might be in a position where you’ve had financial difficulties but can now comfortably afford to pay back a loan. A secured loan can give you the opportunity to do this even if you have a poor credit history. Taking out this type of loan can also help you to improve your credit score for the future. By demonstrating your ability to repay commitments, this could increase your options of refinancing to a more competitive rate in the future.
If you have a bad credit history and need mortgage advice, you can read our bad credit guides here. Or have a look at our other bad credit mortgage options.
For free initial advice from our qualified mortgage brokers about a secured loan, call 0800 197 0504 or click below to request a callback at a time to suit you.
Case Study
We sourced a secured loan for one customer who wanted to consolidate debt and make home improvements
Mr W wanted to consolidate his unsecured debts and carry out improvements to his home, whilst reducing his monthly payments. He was tied into a fixed rate with his mortgage though and unable to remortgage at the time.
With Clever Mortgages he was able to:
- Consolidate his unsecured debts of almost £15,500
- Receive funds of almost £40,000 to carry out home improvements
- Save nearly £200 per month
| Balance | Payment | Rate | Term | |
|---|---|---|---|---|
| Previous unsecured debts | £15,450 | £500 | ||
| Additional borrowing | £39,550 | |||
| New secured loan | £58,355 | £335 | 5.35% | 28 years |
No obligation advice on secured loan
Quickly see if you could be accepted for a mortgage before you apply
Could you get a mortgage?
Have you ever wondered how much you could borrow?
Complete our quick and simple form to get an overview of how much you could potentially borrow and estimated monthly payments.*
How much could you borrow?
Wondering how much you could potentially borrow and how much a mortgage might cost you?*
Use our free interactive mortgage form to tell you.
Our mortgage advisors will then speak to you in more detail for a free, no obligation mortgage quote.
6 Great reasons to choose Clever Mortgages
Specialists in bad credit
Every member of our team is trained in bad credit situations and know how to find the right solutions for customers – helping them get the mortgage that’ll get them back on track.
Over 100 lenders
We know that sorting out a remortgage can be stressful – but our experienced team of experts will have any questions you have along the way, and will always be proactive when it comes to keeping you in the loop with your application progress.
Experts in bad credit
We have helped 1000’s of people with bad credit. All our advisors are trained on securing mortgages for clients with bad credit. In short, we know this market.
Access To Exclusive Rates
We have access to every adverse friendly lender, we can often secure you exclusive rates you can’t find on the high street.
First class support
We know that buying or moving house and getting a mortgage is stressful, so we do our upmost to make the process as hassle-free as possible. We’re there for you at every step, always keeping you in the loop.
Excellent Reviews
We’re proud of our long-standing 5 Star Rating on Trustpilot, and love all the positive feedback we get from customers every day. We feel privileged to help people get a great deal with far less stress.
Why use a mortgage broker?
Mortgage brokers help you find the best deals on the market – not just from one lender. With a broker you can expect:
- Valuable knowledge, through years of experience helping customers to find mortgages
- An improved chance at finding a mortgage, some mortgages are only available through a broker
- Help with the application process, as usually just one application can be used across various lenders
- Advice on how to improve your chances, for instance getting a guarantor or applying for a joint mortgage
About Clever Mortgages
We specialise in assessing an individual’s situation, and finding the right mortgage solution for them. We can help:
- With remortgages, buy-to-let, and first-time buyers mortgages. We have experts who cover these areas
- Even if you’ve got bad credit – we help people every day with a variety of credit histories to find the right mortgage
- With applications, as we’ll take the hassle away. We require your details once and we’ll know the best lenders for your circumstance
- Our team know the lenders that are most likely to say ‘yes’, and give you the best rates
What should I do next?
- You enquire online with us today or request a call back
Our simple form takes a couple of minutes to fill in, this gets the ball rolling
- One of our experts will give you a call to find out more about your situation
We have experts in remortgaging, who focus solely on helping customers save money
- We do all the hard work for you
We search the market for the trusted lender that’s right for you
- Our expert will get back in touch
We can guide you every step of the way, and we’ll always keep you up-to-date with progress
Vicki Redley
Working closely with both the Mortgage Advisers and Administrators Vicky ensure the smooth progresson of the mortgage applications.
Call us on: 0800 197 0504
Below are some of the lenders we work with
