Equifinance Review: A Comprehensive Look at Secured Loans for UK Borrowers
Read our in-depth review of Equifinance secured loans. Explore loan options, costs, customer feedback, and whether their second charge mortgages suit UK homeowners.
Related articles
Introduction
For many homeowners in the UK, there comes a time when borrowing is needed for reasons beyond what a credit card or personal loan can comfortably handle. Large-scale home improvements, consolidating several debts, or dealing with an unexpected financial hit—such as a recently lost job or other recent life event—often require access to a more substantial sum. This is where secured loans come in.
Equifinance is a specialist lender that focuses on secured loans, also referred to as second charge mortgages. Unlike unsecured loans, these products are tied to the borrower’s property, which means the house or flat provides the security for the debt. That security gives lenders confidence to approve larger borrowing amounts for their clients. , sometimes with more flexible repayment terms, particularly for applicants who may have struggled to get approval elsewhere.
This review takes a detailed look at Equifinance secured loans, covering loan options, fees, customer service, and the pros and cons that potential borrowers should weigh before making a decision.
About Equifinance
Equifinance is a UK-based lender specialising in secured homeowner loans. Unlike many high street banks and mainstream mortgage lenders, they focus primarily on the second charge mortgage market. The company is authorised and regulated by the Financial Conduct Authority (FCA), which gives borrowers confidence in its compliance with strict consumer protection standards.
Operating as a charge mortgage lender, Equifinance is not a broker – it lends its own money rather than searching across multiple lenders. This makes it slightly different from broker-led services where loans are arranged via referral panels. Borrowers deal directly with Equifinance and its customer service team throughout the application process.
Reviews of Equifinance are mixed, which is fairly typical in the secured loan space. Some Equifinance reviews highlight positive experiences with supportive advisors and straightforward loan arrangements. Others point to frustrations around communication or fees, with a few complaints escalated to the Financial Ombudsman Service. Like many lenders in this sector, experiences can vary, and much depends on personal circumstances and expectations. However, it is worth noting that Equifinance has a low rating of 2.3 out of 5 on Trustpilot, reflecting some dissatisfaction among its customers.
Loan Options with Equifinance
This is where Equifinance stands out. It provides a range of secured loan products that can suit different borrower profiles, from those with stable financial situations to those facing credit challenges.
Equifinance also offers borrowers the flexibility to repay their second charge mortgage at any time, which can help avoid additional interest or early repayment charges, depending on the specific loan terms.
Loan Amounts and Terms
Borrowing starts at around £5,000 and can stretch to £250,000 or more, depending on the available equity in the property. Loan terms range between three years and twenty-five years, giving customers a wide choice of repayment periods. Longer terms lower the monthly payment but increase the overall cost, while shorter terms are more intense but reduce interest paid.
Interest Rates
The interest rate on an Equifinance loan depends on several factors: the amount borrowed, loan-to-value ratio, the borrower’s credit profile, and income stability. Rates typically start from around 6% but can climb significantly higher for those with poor credit or tighter affordability margins. However, the interest rate on a second charge mortgage is typically lower than unsecured credit, making it a potentially more affordable option for larger borrowing needs.
Importantly, interest is usually fixed for the loan term, giving borrowers certainty about their monthly payments. However, some loans may carry a variable rate, which means repayments can change if wider market rates rise.
Types of Loans
Equifinance offers several variations of second charge mortgage products, including:
- Standard secured homeowner loans – These are straightforward second charge mortgages for homeowners who want to release equity for projects or expenses.
- Debt consolidation loans – Designed to roll multiple existing debts, such as credit cards or personal loans, into one repayment. This simplifies budgeting and may lead to a better rate, though the loan is still secured against the property.
- Specialist loans for self-employed or those with adverse credit – Equifinance has carved a niche in working with borrowers who have non-standard incomes or blemished credit histories. Mainstream mortgage lenders may turn these applicants away, but Equifinance considers them under flexible underwriting criteria.
- Particular second mortgage options – Loans structured as a true second charge mortgage, sitting behind the borrower’s first mortgage on the property.
Representative Example
To provide a sense of cost, Equifinance gives representative examples. For instance, borrowing £30,000 over 10 years at a representative APRC of 7.5% could lead to monthly repayments of around £354, with the total repayable hitting £42,500.
While every deal will vary based on credit and property details, this shows the scale of repayment commitment involved. The example also highlights how the total cost of finance can be significantly higher than the amount borrowed, especially over long terms.
Eligibility Criteria
Equifinance loans are open to UK homeowners only. A property with sufficient equity is required to act as collateral, which means renters are not eligible. Key factors considered include:
- Property value and equity – The more equity available, the more flexible the lender can be.
- Income and affordability – Borrowers must prove they can meet monthly repayments.
- Credit history – While a poor credit record may reduce the loan size or increase the interest rate, Equifinance does consider applicants with financial challenges.
Applicants with a first mortgage in place must demonstrate they are up to date with payments. Any arrears on the first charge mortgage could reduce eligibility or trigger higher rates. Property valuations are also carried out to confirm the security value.
Fees and Costs
Equifinance charges fees in line with many other secured loan lenders. These may include:
- Broker fees – If the loan is introduced via a broker, a separate charge may apply.
- Lender fees – Set directly by Equifinance, often covering processing, administration, or legal work.
- Valuation costs – Depending on the property, a valuation may be required, and costs are typically passed on to the borrower.
Some customers in reviews have complained of what they saw as excessive charges, though others report that the fees were clearly explained upfront. Unlike some brokers that promote “no hidden fees,” Equifinance is less marketing-driven but does aim to be transparent in loan agreements.
Borrowers should also check whether an early repayment charge applies. Paying off the loan early could save interest but may trigger fees if the lender’s terms specify a penalty.
Loan Repayment and Management
Equifinance offers flexible repayment terms on their second charge mortgages, with options extending up to 25 years. This allows customers to tailor their loan to fit their budget and long-term financial plans, whether they’re looking to consolidate debt, finance a major purchase, or pay for essential home improvements. Borrowers can choose between fixed or variable interest rates, giving them the ability to select a repayment structure that best matches their needs and risk tolerance.
Understanding the full terms and conditions of your charge mortgage is crucial. Equifinance ensures that all details—such as the interest rate, repayment schedule, and any associated fees—are clearly outlined before you commit. This transparency helps customers avoid unexpected costs and manage their loans with confidence.
The Equifinance customer service team is on hand to support account holders throughout the life of the loan. Whether you have questions about your monthly payment, need to adjust your repayment plan, or face a sudden change in circumstances—such as the loss of a husband or a change in employment status—the team aims to provide understanding and practical solutions. Their approach is to keep the process straightforward, focusing on your individual situation rather than relying solely on credit scores.
One advantage of a second charge mortgage with Equifinance is the potential to avoid early repayment charges that can sometimes apply to other types of loans. This can make it more cost-effective if you’re able to pay off your loan ahead of schedule. Additionally, by working with qualified brokers and intermediaries, Equifinance helps ensure that customers receive expert advice and a charge mortgage product that genuinely fits their needs.
For those who may be unable to remortgage or who want to avoid the complexity and cost of switching their first mortgage, Equifinance’s second charge mortgages offer a flexible alternative. These products also allow borrowers to preserve the benefits of their first mortgage, such as a lower interest rate or favourable terms, while still accessing additional funds.
Application Process
Applying for a secured loan with Equifinance is reasonably straightforward, though it requires more paperwork than an unsecured loan. The process typically unfolds as follows:
- Initial enquiry – Borrowers can start online or by phone, providing details about their property, mortgage, income, and loan needs.
- Soft credit check – An initial review is usually carried out without affecting the borrower’s credit score.
- Hard credit check and formal application – Once progressed, a hard search is carried out.
- Property valuation – To confirm the equity available, a surveyor may value the property.
- Loan offer and acceptance – Once approved, borrowers receive documents outlining the interest rate, monthly payments, and total repayable. Borrowers will also receive an official letter from Equifinance confirming the outcome of their application and detailing the terms of the loan.
- Funds released – After signing, money is usually released to the borrower’s bank account within two to three weeks.
Throughout the process, Equifinance’s customer service team provides updates and support. Some reviewers have praised the clarity of communication, while others have reported delays in response and difficulty to respond, particularly at busy times..
Customer Service and Support
Equifinance’s customer service team is based in the UK and generally receives solid feedback for professionalism. Borrowers are typically assigned a case manager, offering continuity during the application.
However, some negative Equifinance reviews mention frustrations where communication fell short or responses took longer than expected. In such cases, customers have the right to escalate complaints to the Financial Ombudsman Service if they feel matters are unresolved. Additionally, some users have described Equifinance's customer service as unprofessional, which may contribute to the mixed feedback.
Dispute Resolution
If you ever have a complaint or dispute with Equifinance, the company encourages you to reach out directly to their customer service team. They are committed to providing a high standard of service, and if something falls short of your expectations, they want to know so they can put it right. Customers can contact Equifinance to register a complaint by email, telephone, or post, and the company will acknowledge your complaint promptly, typically within 5 days of receipt, keeping you informed throughout the review process.
Equifinance aims to resolve all complaints fairly and transparently, taking into account the specific circumstances of each customer. You can expect a final response within eight weeks of your initial contact. If you are not satisfied with the outcome, or if Equifinance does not respond within this timeframe, you have the right to refer your complaint to the Financial Ombudsman Service (FOS).
The FOS offers a free, independent review of complaints between customers and financial companies. You can contact the ombudsman by phone, email, or post, and you must do so within six months of receiving Equifinance’s final response. The ombudsman will review your case and make a decision based on what is fair and reasonable, considering all the evidence provided. This ensures that unresolved complaints have a clear path to resolution.
Throughout the dispute resolution process, Equifinance’s goal is to deal with complaints efficiently and with integrity, ensuring that customers feel heard and supported. By working closely with both customers and the Financial Ombudsman Service, Equifinance strives to resolve issues in a way that is fair to all parties and upholds the standards expected of a responsible charge mortgage lender.
Pros of Choosing Equifinance Secured Loans
- Wide loan amounts, from £5,000 to £250,000+.
- Flexible repayment terms, up to 25 years.
- Willingness to consider self-employed and poor-credit applicants.
- FCA-regulated and bound by consumer protection rules.
- Direct lender, not just a broker, reducing reliance on intermediaries.
Cons and Things to Watch Out For
- Property at risk if repayments are missed.
- Interest rates can be high for poor-credit applicants.
- Additional fees for valuations or legal work may apply.
- Long repayment terms increase the overall cost significantly.
- Some customers have reported communication delays or excessive charges.
Alternatives to Equifinance
Borrowers considering Equifinance may also wish to compare with other UK second charge mortgage lenders such as Norton Home Loans, Central Trust, Pepper Money, or Selina Finance.
In some cases, a remortgage may provide a lower interest rate, but remortgaging can involve changing your main mortgage and may trigger fees. Brokers can help compare Equifinance’s offerings against wider market deals, ensuring the borrower gets a better rate where possible.
Who Are Equifinance Secured Loans Best For?
Equifinance products are most suitable for:
- Borrowers consolidating multiple debts into a single repayment.
- Homeowners funding large-scale home improvements.
- Individuals with adverse credit histories seeking access to finance.
- The self-employed, where irregular income makes mainstream mortgage borrowing difficult.
Final Verdict
Equifinance has established itself as a practical choice in the UK secured loans market. It specialises in second charge mortgages, offering flexibility for borrowers who may not fit the mould required by high street banks.
Its strengths lie in inclusivity – considering applicants with different credit backgrounds – and in its range of loan options. However, borrowers must be cautious about the risks: property security, the possibility of higher fees, and long-term repayment commitments that can add up to a significant total cost.
Overall, for UK homeowners who need a second charge mortgage and are willing to accept the responsibilities that come with it, Equifinance secured loans are worth reviewing alongside other lenders.
Additional Resources
Frequently Asked Questions: Secured Loans
What is a second-charge mortgage?
A second-charge mortgage is a type of secured loan that lets you borrow money using your home as collateral. It sits behind your first mortgage, so your main lender is repaid first if the property is sold.
How is the loan decision made?
Equifinance doesn't use automated decision-making. An experienced underwriting team personally reviews each case to work out whether you can afford the loan.
Can self-employed applicants apply?
Yes. Equifinance accepts applications from the self-employed, as long as your supporting documents show your income and ability to repay.
How much can I borrow with Equifinance?
Equifinance secured loans range from £5,000 to £150,000 via one online broker. Exact amounts and terms will depend on your circumstances and the value of your property.
What are the repayment terms?
According to Equifinance's FAQs, repayment periods range from 3 to 25 years. The minimum borrower age is 21 and the loan term must end on or before their 80th birthday.
Articles that might interest you
Best Secured Loan to Consolidate Debt: A Step Towards Financial Relief
Discover the best secured loan options to consolidate debt and simplify repayments. Learn how secured and unsecured loans work, eligibility factors, benefits, risks, and alternatives to find the right debt consolidation solution for your financial needs.
Top 10 Advantages of Secured Loans – Why Choose a Secured Loan?
Secured loans offer lower interest rates, higher borrowing limits, and longer repayment terms. Uncover the top 10 benefits of choosing a secured loan.
Secured Loans Glossary – 25 Terms to Know
Learn the essential terminology of secured loans. Our glossary explains 25 key terms in simple language.
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.
