Secured loans, also known as homeowner loans or second-charge mortgages, allow homeowners with an existing mortgage to borrow money using their property as security (also called 'collateral'). This type of personal loan typically allows borrowers to access larger sums of money, often being used for significant expenditures, like consolidating large debts or renovating property. As the loan is secured against the value of your property, it means that if you do not keep up with loan repayments, the lender may decide to sell your property in order to recover the borrowed funds.

Home Improvement: Many homeowners use secured loans to fund renovations, extensions, or repairs to their property, which can increase the value and improve living conditions.

Debt Consolidation: Secured loans can help consolidate multiple high-interest debts into a single loan with a potentially lower interest rate, making repayments more manageable.

Property Purchase: Mortgages are a common form of secured loan used to buy residential or investment properties. The property itself serves as collateral.Vehicle Purchase: Secured loans can finance the purchase of cars, vans, or other vehicles, with the vehicle itself often acting as collateral.

Business Funding: Entrepreneurs may use secured loans to finance business ventures, including purchasing equipment, expanding operations, or covering startup costs and tax bills.

The amount you can borrow with a secured loan and the repayment term can vary based on several factors, including the value of the collateral, your credit history, income, and the lender's policies.

Secured loans can be cheaper, allow you to borrow more, and be easier to get approved for, but they do put your collateral at risk if you fail to repay the loan.

1. Lower Interest Rates: Secured loans usually have lower interest rates because they are backed by collateral, reducing the lender's risk.

2. Higher Borrowing Limits: You can often borrow more money with a secured loan since the loan is guaranteed by an asset.

3. Longer Repayment Terms: Secured loans typically offer longer repayment periods, which can make monthly payments more manageable.

4. Easier Approval: It's generally easier to get approved for a secured loan, even if you have a lower credit score, because the loan is backed by collateral.

Getting a quote for a secured loan does not impact your credit score. Lenders perform a "soft" credit check to give you an idea of the rates and terms you might qualify for. Soft credit checks do not affect your credit score and are not visible to other lenders.

A "hard" credit check is only performed when you officially apply for the loan. Hard checks can impact your credit score slightly and are visible to other lenders.

Begin by looking into the secured loans available. Compare what banks, online lenders or secured loan providers are offering, taking particular interest in their rates, terms, and eligibility requirements to find the best fit for you.
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You would then complete a secured loan quote form there. You'll be asked for details on yourself and your finances including employment history, income, expenses, and the purpose of the loan. The quote, includes a soft credit search that does not impact your credit score but allows advisors to check your eligibility for offers.

We have a selection of secured loan lenders who offer loans if you have a bad credit history and if you make your payments on time, you can improve your credit score. Some of our lenders also accept CCJs and defaults, even if they’ve occurred in the last 12 months.