Best low-interest secured loans in 2025
A great interest rate changes everything. Let's look at secured loans that go a little lower than the rest.
Related articles
Top Secured Loans with Market-Leading Low Rates
Whether you're borrowing to renovate, clear debt, or just unlock equity without draining your savings, these are the secured loans with that all-important benefit - a low interest rate. I've pulled these market leading rates straight from lender pages, so you're not just reading about good deals - you know exactly where to find them.
Freedom Finance via Fair Investment
Freedom Finance (through Fair Investment) offers an interest rate that truly undercuts the market:
- Interest rate: Starting from 3.57% APR
- Loan amount: Borrow from £25,000 up to £1,000,000
- Loan term: Ranging from 3 to 35 years
- Purpose: All homeowner needs, including home improvements and debt consolidation
- Other features: Drawdown facility (only pay interest only on what you use) and no early repayment penalties
April Mortgages
Offering mortgages and remortgages rather than a standalone secured loan, April deserves a mention for its low interest and rate drops:
- Interest rate: Starting from 5.05% and representative APRC from 6.17% (60% LTV), the interest rate automatically drops as your LTV improves over time
- Loan amount: Subject to affordability and property value
- Loan term: 5, 10, or 15-year fixed rate terms
- Purpose: Mostly for home purchases or remortgages, including debt consolidation
- Other features: No early repayment charges - repay early, overpay, or move home with no fee
Lendology CIC
Lendology CIC partners with councils to offer a homeowner repair loan with low interest and borrower-friendly terms:
- Interest rate: 4% with a representative APR of 4.2%
- Loan amount: Borrow from £500
- Loan term: Repay for up to 15 years
- Purpose: Replacement boilers, roofs, windows, kitchens, disability adaptations, and more.
- Other features: Human decision process, no early repayment charge, and flexible overpayments
Summing up
If you think all interest rates start at 6% or more in 2025, think again. April Mortgages, Lendology CIC, and Freedom Finance offer highly competitive rates, flexible terms, and no early repayment charges - proving that it's possible to borrow what you need without paying back more than you're comfortable with.
Frequently Asked Questions: Secured Loans
What's the difference between fixed and variable interest?
Fixed interest rates stay the same throughout the life of your loan, meaning your monthly repayments won't change. This helps with budgeting and protects you if market interest rates rise. Variable rates can go up or down depending on the market, so your repayments might increase or decrease over time.
Will a low interest rate stay low forever?
Only if you choose a fixed-rate loan. Fixed-rate secured loans lock your interest rate for the whole term, so you won't be affected by market changes. Variable-rate loans can change over time, sometimes leading to higher monthly repayments if interest rates rise. It's important to check the loan terms carefully and understand whether your rate is fixed or variable, and for how long.
Can I switch secured loan deals later?
Yes, you can often refinance or remortgage a secured loan, especially if your property value increases or your credit improves. Still, some loans carry early repayment charges or fees, especially if you switch within the first few years. It's important to check the terms before committing, to work out whether refinancing will actually save you money after fees.
Does a low interest rate mean lower fees too?
Not necessarily. A loan with a low headline interest rate may still include upfront fees, broker fees, or valuation costs that add to the total cost. The APRC (annual percentage rate of charge) gives a more complete picture, combining interest and fees into a single percentage. Always compare the APRC alongside the interest rate to understand the full cost of a loan.
Articles that might interest you
Secured Loan Compare | Money Saving Advisors
Compare secured loan options from various lenders side by side. Find the right loan for your needs at the best rate.
How to Get Out Of Debt in 2025: 12 Easy Steps
Explore 12 effective strategies to manage, reduce, and eliminate debt for a brighter financial future.
Which credit reference agencies do lenders use?
Find out how credit checks affect your secured loan and what lenders are seeing behind the scenes.
The details shown are for illustration only and may not include all lenders or products. Actual rates and terms depend on your circumstances and the lender’s assessment. Information was correct at publication but may change at any time.
