Who can get a secured loan?
Let's see who qualifies for secured borrowing and why it might be right for you.
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Who Really Qualifies for a Secured Loan?
You might be surprised by the availability of secured loans - they're more accessible than many people think. If you own enough equity in your home, you might already be holding the key to extra cash. Here's who secured loans are really for, and how different lenders size you up.
Who secured loans are for
Not everyone will benefit from a secured loan, but for the right borrower, it can be a powerful financial tool. Here are some typical candidates:
- Homeowners with equity - You own your home outright or have a chunk of your mortgage paid off
- People with stable income - Lenders want to see that you can comfortably afford repayments
- Borrowers with credit issues - Many specialist lenders assess the full picture, not just your score
- Those needing a little more - Secured loans often go much higher than personal loans
- Anyone wanting longer repayments - Some secured loans stretch up to 25 or even 30 years
Tip: If you're in one or more of these categories, you might just fit the bill - so it's worth exploring your secured loan options.
Think you won't qualify? Think again
Secured loans aren't just for high earners with flawless credit. In fact, these loans are designed for a range of borrowers, including:
- Self-employed or freelancers - If you can show a steady income, you may still qualify.
- Older borrowers - Many lenders accept applications well into your 60s, 70s, and beyond
- Part-time workers / benefits - If your income and equity are good, some lenders will consider you
- Imperfect credit histories - Many lenders assess your overall situation - not just a number.
- Recently turned down - Challenger and specialist lenders often work with people who've been declined before
Tip: Don't assume the door is closed. The secured loan market is broader and more flexible than you might think.
Summing up
Secured loans aren't just for borrowers with spotless credit - many lenders are open to those with more complex finances. The key is making sure the loan is affordable and suits your long-term goals. Always weigh the benefits against the risks, especially since your property could be repossessed if you fall behind.
Frequently Asked Questions: Secured Loans
How much can I borrow with a secured loan?
The amount you can borrow depends mainly on how much equity you have in your property and your ability to afford repayments. In the UK, secured loans generally start around £10,000 but can go all the way up to £500,000 or more. Some lenders will even consider bespoke amounts depending on your situation. The more equity you have - and the stronger your income - the better.
Do I need a perfect credit score?
Not necessarily. While a higher credit score can help you get better interest rates, many specialist lenders are happy to work with people who've had credit issues in the past. They'll look at your broader financial picture, including how much equity you have and how affordable the loan is for you now. So even with weak credit, a secured loan could still be possible.
Can I use a secured loan for anything?
In most cases, yes. Secured loans are incredibly flexible and can be used for a wide range of purposes. Common uses include home improvements (like loft conversions or extensions), consolidating other debts, paying for major life events (like weddings or degrees), or even a business venture. As long as it's legal and reasonable, the funds are yours to use as needed.
What happens if I miss repayments?
Missing repayments on a secured loan is serious - because your property is used as collateral, the lender can, in extreme cases, repossess your home. That said, repossession is always a last resort. Most lenders will work with you to resolve missed payments and may offer temporary arrangements if you're struggling. Only borrow what you can realistically repay and to have a clear plan in place.
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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.
