A secured loan may be worth considering if you need to borrow a larger loan amount or you’re finding it difficult to get a personal loan, perhaps because you have issues with your credit rating or are self-employed. You may find it easier to borrow more or get approved because with a secured loan you’ll need to use an asset that you own as security for the loan. This will typically be your home, and is why secured loans are often also called second charge mortgages or homeowner loans.
The crucial thing to remember with a secured loan is that you could lose your property if you fail to keep up with your repayments – it’s also why we’d strongly recommend seeking financial advice before you proceed.
Understanding all there is to know about secured loans is therefore essential to working out whether a secured loan is the right choice for you. It’s also where our roundup of some of the best secured loan providers can help as you begin your search. Our star ratings are based on our expert assessment of the features that secured loan borrowers have told us are most important to them when looking for a secured loan.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a loan or any other debt secured on it. If you are thinking of consolidating existing borrowing you should be aware that you may be extending the terms of the debt and increasing the total amount you repay. This secured loans comparison and quote service is presented via our partnership with Norton Finance. Data provided is submitted directly to Norton Finance. Nerdwallet Ltd does not form part of the service beyond this introduction.
Best Secured Loan Providers
This selection of secured loans is from 11 lenders that NerdWallet evaluated and reviewed, but others are available in the UK market. Find out what we mean when we say ‘best’ and why we are comfortable using it, with an in-depth explanation of how NerdWallet star ratings work in our review and ratings methodology.
Think carefully about securing debt on your home. Your home may be repossessed if you do not keep up repayments.
Consolidating multiple debts into one loan can extend the term of your borrowing and increase your cost of borrowing
Important information: Neither our review or star ratings considered lending rates, and therefore does not reflect how much it costs to borrow from these lenders. Always check and compare a lender’s rates against others on the market when considering a secured loan. The rate you are offered will be dependent on your circumstances, loan amount and term, and may differ from the advertised rate. If you have poor credit, only borrow if it is necessary and you can comfortably afford repayments.
Promotion Pepper Money Secured Loan
Available Terms
• Available amounts
• Maximum LTV
• Rate Options
Get quote from Norton Finance
This secured loan provider is one of a panel of lenders available via a comparison and quote service provided via our partnership with Norton Finance. Data provided is submitted directly to Norton Finance. Nerdwallet Ltd does not form part of the service beyond this introduction.
Minimum property value of £75,000
Available to self-employed, employed, contractor income applicants
Property must be in the UK and already have a first charge mortgage secured against it
The loan must be secured on your primary residential address
Pros:
Fixed, variable and discounted rates are available.
You can borrow up to 100% of equity.
There is a low minimum loan amount.
You can select from a wide range of loan terms.
Cons:
Borrowing 100% of the value of your home comes with increased risk to a borrower.
Pepper Money does not offer email replies as part of its customer support.
Promotion Tandem Secured Loan
Available Terms
• Available amounts
• Maximum LTV
• Rate Options
Get quote from Norton Finance
This secured loan provider is one of a panel of lenders available via a comparison and quote service provided via our partnership with Norton Finance. Data provided is submitted directly to Norton Finance. Nerdwallet Ltd does not form part of the service beyond this introduction.
Must be at least 18 years old and a UK resident
Pros:
Fixed and variable rate options are available.
You can borrow up to 95% of equity.
There is a low minimum loan amount.
It offers short repayment terms starting from two years.
Tandem provides multiple customer support channels such as email, phone and live chat.
Cons:
Tandem’s eligibility criteria is not clearly stated on its website.
Some other secured loan lenders may offer larger loan amounts.
You can find longer repayment terms elsewhere.
Promotion Norton Home Loans Secured Loan
• Available Terms
• Available amounts
• Maximum LTV
• Rate Options
Get quote from Norton Finance
This secured loan provider is one of a panel of lenders available via a comparison and quote service provided via our partnership with Norton Finance. Data provided is submitted directly to Norton Finance. Nerdwallet Ltd does not form part of the service beyond this introduction.
Minimum credit score of 300 is required
Term not to extend past 85th birthday of customer
Must not have been bankrupt or subject to a Debt Relief Order within the last 3 years