Secured loan

Buying your first property is an exciting step – and a big one too.

Secured Loan

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

Mortgage application process

4 simple steps for applying for a mortgage. See more about the mortgage application process here

Complete our
pre-qualify form

Let us know a few details about the mortgage you require

A mortgage specialist will call

One of our brokers will call and get a few more details of your requirements

We search for your perfect mortgage

We will search the market for the best rates for your circumstances

A Decision in Principle is made

We will secure a DIP with a lender, if you approve we move forward with a full application.

Whatever your mortgage goal, there will be something for you​

goal to save money

We're on a mission to save you money on your mortgage

Arrange a callback

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We specialise in helping people find a mortgage and remortgage.

We require your details only once and we’ll know the best lenders for your circumstance and give you the best rates.

What should I do next?

There are many ways to contact us

Enquire online – our simple online form takes just a few minutes.

Give us a Call – our qualified advisers will assess what you are looking and do all the hard work for you searching the market – 0800 197 0504.

Ask for a callback – havent got time now? Ask us to call you back and a time / day convenient to yourself. Call me back.

LiveChat – message us here and tell us what you are looking for our agents are on hand to help.

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.

Below are some of the lenders we work with

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
BalancePaymentRateTerm
Previous unsecured debts£15,450£500
Additional borrowing£39,550
New secured loan£58,355£3355.35%28 years
As Mr W was still tied into the fixed rate on his existing mortgage, it didn’t make sense to pay more than £3,000 of early repayment charges (ERCs). He wanted to carry out home improvements and consolidate his unsecured debt, but as he had previously been in an IVA, wasn’t sure if he’d be able to do this. We were able to source a lender which offered him a loan, which was secured on his property and allowed him to not only make the home improvements and consolidate his debts, but also make a saving of nearly £200 per month.