Best secured loans with no early repayment fees
Looking to pay off your loan early without triggering a charge? Here are some lenders that make it possible.
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Flexible Secured Loans Explained
No one enjoys being tied down by early repayment charges (ERCs). That's why we're uncovering secured loans with zero penalty for paying off early - whether you're expecting a salary increase or just want a bit more flexibility if things change. Let's highlight the deals that let you borrow smart and exit on your terms.
Jubilee2000 - the bad credit loan with no ERC
This secured loan from Jubilee2000 doesn't just offer early repayment for free - but a host of other cost-saving benefits:
- Free home valuation
- No broker fees or lender arrangement fees
- Flexible repayment options
- 7.91% capped interest rate
- Borrow up to 90% loan-to-value (LTV)
- Open-minded about your credit history
- No upper age limit
- No charge for early repayment
Lendology CIC - homeowner repairs with no ERC
Lendology's homeowner repairs loan offers a highly competitive interest rate along with free early repayment:
- Fixed interest rate of 4% (representative APR 4.2%)
- Open to employed, retired, self-employed, poor credit, or benefits
- Flexibility to make extra payments at any time
- Variety of loan options
- Deferred repayment options on some loans
- Up to 15 years to repay on capital repayment loans
- Human underwriting
- No charge for early repayment
Fund Fortress via 1st UK - debt consolidation with no ERC
The debt consolidation loan from Fund Fortress / 1st UK is another secured option with more than just zero ERC - you'll find competitive interest and high LTV, too:
- Borrow up to 90% of your home's value (LTV)
- No fees from lenders, brokers, or advisors
- Fixed-for-life interest rate at 6.76% APR
- No minimum or maximum age
- One penalty-free payment holiday each year
- Free, no-obligation home valuation
- Flexible approach to affordability and credit score
- No charge for early repayment
Summing up
If flexibility matters to you, all three of these secured loans let you repay early without the sting - putting you control if paying early is an option. And the benefits don't end there - you'll find attractive interest rates, flexible repayments, and high LTVs, so you can borrow more of your property's value with confidence.
Frequently Asked Questions: Secured Loans
What's an early repayment charge (ERC)?
An early repayment charge (ERC) is a fee some lenders apply if you pay off your loan in full before the term ends. Lenders often build ERCs into the deal to recover lost interest or cover admin costs. They can range from a few hundred pounds to a percentage of the outstanding balance. Not all lenders apply ERCs - but it's vital to check the small print.
Why choose a secured loan with no ERC?
Secured loans without early repayment charges offer what feels like a no-brainer - you can pay off your loan early, either in full or with overpayments, without being charged for it. This can save you money on interest and give you more options if you want to refinance, remortgage, or sell your property. It can be especially useful if your income improves or you're consolidating debts.
What's the best way to compare secured loans?
Start by checking the APRC (annual percentage rate of charge), which includes the interest rate and any extra fees. Then compare the loan-to-value (LTV) limit to see how much equity you can release. Early repayment flexibility is another key factor. Be sure to check the trade-offs - a loan with a slightly higher rate but no ERC might cost less overall if you plan to pay it off early.
Are loans for bad credit always expensive?
Not always. While interest rates are usually higher if you have poor credit, some lenders offer capped rates with no early repayment fees, making them more affordable over time. These lenders often look beyond your credit score and focus more on your property's value and your recent finances. It's worth comparing niche lenders if you've been turned down elsewhere.
Could a fixed-for-life loan without ERC be right for me?
Yes - if you value certainty and flexibility. A fixed-for-life loan means your interest rate (and monthly payment) stays the same for the entire loan, which is great for budgeting. Combine that with no ERC, and you can repay early or switch products without charge if your situation changes. It's a smart option if you need stability but still want the freedom to pay off faster.
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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.
