Secured Loans for Bad Credit

Yes, it’s possible to get one of these solutions if you have bad credit.

By using a property as security it reduces the level of risk to lenders, which means they can be more flexible. Due to this, they are more likely to accept people with less than perfect circumstances, such as poor credit.

However, it is not definite you will be accepted. Lenders will also consider other factors relating to your personal circumstances to determine your eligibility.

Whilst there are still options open to you, these may be more limited and the interest rates may be higher.

There are a few risks you should be aware of before you take out one of these solutions, including:

- You run the risk of further harming your credit profile if you default on your loan.

- The property you have used as security could be at risk of repossession if you consistently fail to meet repayments.

- It’s a big decision, which you may be committed to for a long period of time.

Getting one of these loans is a big commitment, so it is important you think carefully about whether it is the right decision for you. This will depend on your own circumstances and what you need the loan for. Therefore, the decision is ultimately yours to make.

You will need to weigh up the different options available to you and consider whether you can afford the repayments. Speaking with a qualified mortgage advisor could help you understand this.

Our experts have been helping customers, just like you, for over 35 years, so we have the expertise to help with your case.

Each lender has different criteria that you will need to satisfy to be eligible for a loan, so it massively depends on the provider you go with.

Some lenders may be stricter with their criteria than others, which means you may get accepted by one whilst getting rejected by another.

If your credit profile is very damaged, it could be more challenging to get accepted. Therefore, you may need to speak to a specialist broker who may have a greater understanding of which lenders might accept your application.

As a specialist finance broker, we can support customers in more complex circumstances.

Loan terms can run from 3 to 30 years, so you can find a solution that fits your plans.

Spreading repayments out could help lower your monthly outgoings, but it means you will pay more in interest over the course of the loan. Whereas, having a shorter term will increase monthly payments, but you will pay less interest overall.

There are a few different documents you might need to apply for this solution, depending on which provider you go with. This might include:

- Proof of your income such as payslips, tax returns and bank statements.

- Proof of identity, such as a passport or driving licence.

- Proof of residency and property ownership.

Yes, borrowing against your property can reduce the risk to lenders, as they can repossess your house if you fail to make your repayments. Due to this, lenders are usually more relaxed about letting you borrow, so even if you’ve been refused for an unsecured loan you may still be successful.

It is possible to get one of these solutions by going directly to a lender or through a broker.

It is entirely your decision, but you may find that if you have a very poor credit history it could be worth speaking with a broker. This is because they have access to a range of lenders and may know which lenders are more likely to accept you.