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Secured Loans

Borrow from £20,000 to £1 million

  • No hidden costs
  • Secured loans for most credit profiles
  • All income types accepted
  • Fast application process
  • Expert support from a UK based broker

Loans are secured against property - your home may be repossessed if you do not keep up repayments.

Secured Loans
 
 
 
 

How much do you need to borrow?

To qualify you must:

be a UK resident and own a property
be aged 25-85 with a minimum income of £20,000

Sorry, we are unable to help you as Secured Loans are only available to Homeowners.
Please enter a loan amount

Or call us now on 0800 032 4646

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Loans are secured against property - Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
We are a loan broker Authorised and Regulated by the Financial Conduct Authority. We do not offer mortgages from high street lenders, so you should apply there first. If you were rejected, we may be able to help you.
We do not offer mortgages from high street lenders, so you should apply there first. If you were rejected, we may be able to help you.
Please accept marketing cookies to watch this video. what is a secured loan?

What is a secured loan?

 
 
 
 

It is a form of borrowing, which uses a property you own as 'security' or 'collateral'.

Securing a loan against your property gives lenders reassurance that it will be repaid. This can make them feel more comfortable about approving your application, even if you are a higher risk.

With this option, lenders may also offer you a larger amount of money and be able to get you a better interest rate than some other finance solutions.

However, remember that your home may be at risk if you do not make repayments. So, always make sure you can comfortably afford it before you agree.

With over 600 products available, offering terms from 3 to 30 years, it is possible we have a solution that meets your needs.

secured loans with keys

What can a secured loan be used for?

 
 
 
 

You can use them for any legal purpose you choose. Some people use it to consolidate debts, fund home improvements, or finance major life plans like a deposit for a second home, extensive education costs, or a dream wedding.

If you're considering consolidating existing borrowing, it's important to note that this may extend the terms of the debt and increase the overall amount you'll repay.

Our team of qualified advisors are experienced in finding secured loans for customers just like you. We always aim to find you a suitable and affordable product, which gives you the freedom to start your plans whatever they may be.

stack of coins for secured finance

Is a secured loan right for me?

 
 
 
 

It depends on your circumstances. They can be a great choice for many people. In particular, if you wish to borrow a larger amount of money, or repay over a longer repayment period, they may be ideal.

This form of funding proves especially effective in certain situations, such as:

When you have complex circumstances or have been declined for other types of finance –Unsecured loan providers are less inclined to lend money to people who are a higher risk. In such cases, opting for a secured loan might increase your chances of approval, as lenders tend to be more flexible.

You have high remortgage rates or will incur fees – If you considered remortgaging your property for extra funds but face high interest rates or early repayment charges, you might want to explore secured loans as an alternative.

However, it is important to consider the risks. Taking out a loan against your property can put your home at risk if you can't repay. Therefore, you must always think carefully about if it is the right option for you. 

As a UK based broker, our team is always on hand to talk through your options if you are unsure.

question mark for how do you apply for secured loans

How do you apply for secured loans?

 
 
 
 

Applying is simple. Either you can apply online or by phone, whichever you prefer. Here is an overview of our application process:

  1. Before you apply, you need to consider how much you can afford to borrow and over what term.
  2. Next you will need to call a member of our experienced team on 0800 032 4646 to talk through your requirements. Or you can enter your details in our online form above and we will call you.
  3. Our advisors will try to find you a suitable and affordable solution from our range of products. If we find you a loan, one of our friendly professionals will contact you to discuss the details.

The final say is yours. If you are happy, you can choose to proceed and get your funds.

Always make sure you have bank statements, photo ID and proof of your address ready to help the process run smoothly and quickly. 

graph for secured loans uk

How much can I borrow with a secured loan?

 
 
 
 

Using your home as security may let you borrow larger amounts of money. The exact amount you can borrow will depend on how much you can comfortably afford, your credit profile and how much equity is in your property.

We have products with loan sizes ranging from £20,000 up to £1 million. So, there are a number of different options open to you. When you apply, we will compare all our options to try and find you the most suitable and best secured loan we have available.

calculator for borrowing terms of secured loans

What are the borrowing terms on secured loans?

 
 
 
 

Repayment terms vary greatly. We have both long and short repayment periods available.

Borrowing over a longer period may reduce your monthly repayments and make it more affordable. However, you may pay more interest in total.

Shorter repayment periods often mean you repay less interest in total, but the monthly payments may be higher. It is essential to make sure you can comfortably afford the monthly repayments, as your home may be at risk if you fail to repay.

We have options available with terms ranging from 3 to 30 years, so you can find a solution that is manageable and affordable for you.

Before you make your secured loan application, it is vital you consider whether a shorter or longer term would be good for you. 

paperwork for how does a secured loan work

How does a secured loan work?

 
 
 
 

Secured loans use your home, or another property you own, as “security” against the money you borrow. This is also often known as "collateral". 

It operates as a second line of borrowing that runs alongside your first mortgage, meaning it does not alter your current terms.

Most loans work in a similar way, where you pay back a certain amount every month, in addition to any interest you have incurred.

Essentially, you agree with your lender on a term and the repayments are spread out over that period. Every month you will have a set amount to repay, as well as interest, until the term is finished and the balance has been repaid in full.  

If you are in a position where you can repay earlier, then you can do this. However, some providers may charge you early repayment fees. Before you sign the offer, it's worth making sure you understand these charges.

The overall amount you pay back depends on the interest rate you are charged. Similar to other mortgages, the interest rate you get may be fixed or variable. With a fixed rate, your repayments remain constant for a certain period. On the other hand, a variable rate can rise or fall and may be influenced by the Bank of England base rate.

As a UK based broker, we have access to a wide range of different lenders. This means we have a variety of secured loan rates available, including both fixed and variable options. 

locks for secured loan rates

What are the differences between a secured and unsecured loan?

 
 
 
 

The main difference is that one takes an asset you own as security, whereas the other does not.

With an unsecured loan, an asset is not used as security (collateral). This means that if you fail to make payments, your lender is not able to repossess an item to recover their costs. Due to this, the risks are higher for lenders. To reduce these risks, they may charge higher interest rates and have stricter qualifying criteria. Therefore, if you have complex circumstances, you may find it difficult to get accepted. If you want to get approved, you may need to take some steps (such as improving your credit score) to be successful. 

In comparison, a secured loan takes an asset (usually a property) you own as security. If you consistently default on your repayments, your lender may repossess the asset. However, this is usually a final resort after other options are explored first. With this solution, lenders are often more relaxed, which means they may have a higher acceptance rate. 

Learn more about the differences in our blog "Secured vs unsecured borrowing".

secured loans enquiry

How do I enquire?

 
 
 
 

For a free, no obligation quote you can:

Call us FREE on 0800 032 4646 or enquire online now. If you submit an enquiry on our online form, our experts will get in touch with you quickly to discuss your needs. 

Don't forget – making an enquiry is easy and will not affect your credit rating in any way!

What our customers say about us

 
 
 
 
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"The Loan Engine dealt with my bridging loan, and I can honestly say that they were more proactive than me, which is saying something! I can't fault them at all - every time I rang, they knew exactly the latest position of my case, and were always helpful and polite. "
Mrs W, Bordon
22 Jan 2024
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"Great. Very helpful. Worked hard for us. Worth 5 stars. Use them anytime. "
Mr H, York
17 Jan 2024
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"They’re friendly and helpful start to finish sandip, emily thank you. From start to finish very helpful I will recommend to everyone thank you."
Mr S, Merthyr Tydfil
05 Jan 2024
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"Excellent service from start to finish. They went the extra mile when complications arose, big shout out to Thisara. I can’t recommend them enough!"
Mrs M, Leeds
12 Dec 2023
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Frequently Asked Questions - Secured Loans

 
 
 
 

Are secured loans easier to get?

They can be easier to get, but it depends on your circumstances.

As a property is used as security, lenders are usually more relaxed with their qualifying criteria, assessment of affordability and the types of customers they will accept. Therefore, provided you are a homeowner you may find it easier to get accepted for this option than other finance solutions.

Will you compare secured loans for me?

We have a team of fully qualified and trained advisors who will complete a fact find, source and recommend a product to you based on your needs. They will compare all available products from across the market that are suitable and affordable.

Why would I opt for a secured loan?

You may choose this option when a personal loan or further advance cannot offer you the amount and/or term you require. Or when you have been refused for other finance based on your credit score or other complex circumstances.

Another reason you may use this option is if you pay a low rate on your mortgage and you would lose it by remortgaging OR you would have to pay high early repayment fees.

What can I use a secured loan for?

You can use it for any legal purpose. Some common uses are to consolidate debts, fund home improvements, finance a major purchase like a second home or pay for a wedding.

If you are considering a secured loan to consolidate debt, you should remember it may take you longer to repay your credit and you may end up paying more in total as a result.

How fast can I get my loan?

We can complete some applications as quickly as 5 working days after receiving all documents. However, other applications may take up to 4 weeks. It all depends on the complexity of the application.

Will my credit score be affected if I apply?

On your initial enquiry a ‘soft search’ is carried out to help us assess your application. You will be able to see this footprint on your credit file but it will not be visible to other lenders.

It is only when you confirm to us that you want to proceed and return a signed application form, that we will then perform a full credit search on behalf of the lender.

Can I apply for a secured loan if I do not have a perfect credit history?

Yes, we have products for most credit profiles. So, if you have missed payments, CCJs or defaults on your file, we may be able to help you.

However, the APRC you are eligible for depends on your individual circumstances. Lenders may charge a higher rate of interest if you have a poor credit history.

Can I apply if I am self-employed?

Yes, but you will need to have been self-employed for at least 2 years.

To prove that you can afford this option, we would need you to provide either an accountant’s certificate or SA302 / tax calculations from the Inland Revenue.

Interest rates may be higher and there may be fewer options, as some lenders may consider it to be more risky.

Find out more in our blog 'can you get a secured loan if you’re self-employed?'. 

What documents do I need for a secured loan?

Usually, we will need bank statements, proof of address and photo ID. You will also need to confirm, sign and return a detailed application form.

As lenders have different requirements, one of our advisors will discuss this in more detail with you during your initial conversation with us.

What is a reflection period?

When the lender has approved your application they will issue you with a formal offer.

You will be given 7 days to reflect on whether this loan offer is right for you and if you want to proceed with the application.

You don't have to wait the full 7 days before confirming you want to accept, but we will ensure that you have this time, should you need it.

Can I repay my secured loan early?

Yes, you can.

One of the questions we will ask when comparing products for you is whether you are considering repaying the loan early. If you indicate that you are, we will advise you of any costs this may have. We will make sure you have all the information you need to decide whether it is right for you.

If you do decide to settle a loan early you will need to contact your lender and ask for a redemption or settlement statement. This will show you exactly how much you need to pay to clear your loan.

How long can it take to pay off secured loans?

Repayment terms can range anywhere from 3 to 30 years. Therefore, the length of time it can take to repay your loan greatly depends on the term you get.

If you’re interested in reducing monthly outgoings you can spread the repayments out over a longer term. However, this will mean it takes you more time to repay the balance and could increase the amount of interest you have to pay overall.

On the other hand, if you want to repay the credit as quickly as possible you can request a shorter term. The monthly payments will however be higher.

What happens if I don’t pay off my secured loan?

If you don’t meet your monthly repayments, your lender is legally allowed to repossess the property you used as security.

However, most lenders will do their best to help you avoid this situation. Therefore, if you are having difficulties, it is important to speak to your lender as soon as possible, so they can try to help you. In some cases, they may be able to arrange repayment plans or even a repayment holiday.

As well as your property being at risk, it can also harm your credit score. 

What are the interest rates for secured loans?

Interest rates are dependent on your own circumstances, so they can vary.

Usually, the interest rate is calculated based on how much of a risk you are to the lender. If you are considered to be a greater financial risk, you may be charged a higher interest rate. Whereas, you may get a lower interest rate if the risk of lending to you is considered to be minimal.

What are the benefits of a loan against property?

There are several benefits that come with borrowing against your home. These include:

  • You can borrow a larger amount of money compared to some other finance solutions.
  • Lenders are often more relaxed with their criteria, so you may have a better chance of being accepted.
  • Repayments can be spread over longer terms, which may be more suitable for you.
  • They can be used to help you with any legal purpose you can think of.

What are the risks of a loan against property?

Although there are many benefits, there are also some risks that should be considered. These are:

  • If you do not make your repayments, your house could be at risk of repossession.
  • There is a chance that you could harm your credit score if you do not keep up with your repayments.
  • Spreading repayments over a longer term could increase the amount of interest you have to pay overall.

Are secured loans for homeowners only?

Typically, these solutions are for homeowners only. The way this option works is that they take a property that you own as "security" or "collateral". 

There may be some providers who are willing to accept other assets. However, most lenders will need a property.

Can I borrow against my house?

Yes, you definitely can borrow money against your house. By doing this, you can increase your chance of acceptance and you may be able to borrow a greater amount of money.

How should I manage my secured loan?

Ensuring timely and complete payments is essential to successfully manage your loan. This will prevent the risk of you losing your home and will ensure your credit score is not negatively impacted. 

Can secured loans be written off?

Unfortunately, it is unlikely that your lender would write off the loan. However, if you are having problems meeting repayments they may be able to support you and come up with an alternative repayment plan. 

Can secured loans help your credit score?

If you consistently make your repayments on time, it can build up your credit score. Therefore, the key is to make sure all your payments are made in full and on time. 

What should I consider before applying for a secured loan?

Before applying, it's essential to consider the following:

Finances:

Ensure you have enough funds in your bank account to cover monthly repayments. Remember, your home is at risk if you default, so be certain you can meet these costs.

Loan to value:

Lenders will look at how much equity you have in the property. The more equity you have, the higher your borrowing capacity.

Put simply, this is how much you own of the property. To calculate equity, you subtract your outstanding mortgage from the property value. 

Interest rate:

Decide on the type of interest rate you would prefer before applying. Could you still afford the loan with the interest rate on top?

Useful guides and blogs

 
 
 
 
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