How much can you borrow with a secured loan?
Let's find out what affects your borrowing power and how to make the most of your equity.
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How Much Can You Borrow with a Secured Loan?
When you're thinking about a secured loan, the first question is usually the same: how much can I actually borrow? The answer is different for everyone - it depends on a mix of your income, your property, your credit history, and more. The one universal is that secured loans can offer access to larger amounts than unsecured options, as long as you're prepared.
Here's what goes into the calculation - and how you can put yourself in a strong position.
What affects your borrowing limit?
There are a few key things lenders look at when deciding how much they're willing to lend you:
- Your equity - the more you own outright, the more you can usually borrow
- Your income - lenders want to see you can comfortably afford the repayments
- Your credit history - stronger credit means better rates and higher potential amounts
- The value of your home - higher-value homes usually open up bigger borrowing options
- Other debts and expenses - if your outgoings are already high, this could limit your options
You don't need a perfect profile, but a clear picture of your finances helps you borrow wisely.
Typical secured loan amounts
Secured loans can unlock significantly larger borrowing than personal loans - but it depends on your situation.
Here's what's common in the UK:
- Loans can start from £5,000 and go up to £250,000+
- The average secured loan in the UK is between £10,000-£100,000
- The amount you can borrow is usually capped at 75-85% of your home's value (minus your mortgage)
- Some lenders go higher for low-risk applicants, especially with high equity
- Lower credit? You might still be able to borrow - but likely a smaller amount at a higher rate
How to increase your borrowing power
Want to give yourself a better chance at borrowing more? Here are a few smart steps to begin with:
- Pay down existing debts to improve your debt-to-income ratio
- Check your credit report and fix any errors or missing information
- Build a stable income history - self-employed? Have your records ready
- Improve your home's value with upgrades or improvements
- Apply jointly with a partner to combine income (if suitable)
And remember: just because you can borrow more doesn't always mean you should. Always make sure your repayments are comfortable.
Summing up
The amount you can borrow with a secured loan depends on more than just your property - it's your full financial picture. From home equity to income to credit health, everything plays a part. The good news is that secured loans often give you access to larger sums than other options. Just make sure it works for your budget now and later. Borrow smart for the right reason, not big for the sake of it.
Frequently Asked Questions: Secured Loans
How much can I borrow against my house?
The amount you can borrow depends mainly on how much equity you have in your home and your overall finances. Most lenders will offer loans up to around 75–85% of your property's value after subtracting any existing mortgage. The more equity you've built, the larger your potential loan - as long as your income and credit score also check out.
Can I get a secured loan with bad credit?
Yes, it's possible to get a secured loan even if your credit isn't perfect. Lenders focus heavily on the equity in your property and your ability to repay. Having steady income and enough equity improves your chances, though you might face higher interest rates or smaller loan amounts. It's important to shop around and be realistic about repayments.
What's the minimum and maximum loan amount?
Most secured loans start at about £5,000, but the maximum can vary widely depending on your property's value and lender policies. Some lenders offer loans up to £250,000 or more, especially if you have a lot of equity. The typical borrowing range for most people tends to be between £10,000 and £100,000, with many borrowers seeking upwards of £25,000.
Does the loan amount affect the interest rate?
Yes, the size of your loan can influence your interest rate. Larger loans often come with lower rates because lenders see them as less risky relative to the property value. But your credit history, income stability, and the lender's terms also play a big role. Always compare the total cost, including fees, rather than just focusing on monthly repayments.
Do I need a property valuation?
Usually, yes. Most lenders will want to assess your property's value to work out how much they can lend safely. Sometimes this is done through a desktop valuation using online data, but for bigger loans, an in-person survey might be needed. The valuation helps the lender understand the security they're getting and set the right loan limits.
Do I need a property valuation?
Usually, yes. Most lenders will want to assess your property's value to work out how much they can lend safely. Sometimes this is done through a desktop valuation using online data, but for bigger loans, an in-person survey might be needed. The valuation helps the lender understand the security they're getting and set the right loan limits.
Do I need a property valuation?
Usually, yes. Most lenders will want to assess your property's value to work out how much they can lend safely. Sometimes this is done through a desktop valuation using online data, but for bigger loans, an in-person survey might be needed. The valuation helps the lender understand the security they're getting and set the right loan limits.
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