Secured Loans with Bad Credit: UK Guide | August 2025

While a good credit score always helps, you're still free to pursue all kinds of lending, from an unsecured loan to a credit card for bad credit. But these options may come with higher interest rates and lower borrowing limits. Secured loans remain one of the best options if you need to borrow a larger amount and have an asset to offer as collateral.

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Yes, it may still be possible to get a loan if you have a County Court Judgment (CCJ), but your options are usually more limited. A CCJ will appear on your credit file for six years and signals to lenders that you’ve had serious repayment problems in the past. This makes many mainstream banks and high-street lenders cautious about approving new credit.

That said, some specialist lenders and secured loan providers will consider applications from people with CCJs, especially if you’re a homeowner with equity in your property. Because the loan is secured against your home, lenders see less risk, which can increase your chances of approval. Keep in mind though, interest rates are often higher and terms may be stricter, so it’s vital to be realistic about affordability before applying.

If you’re unsure about your eligibility or want to explore your options, you can speak directly with our team at Money Saving Advisors. We work with lenders who specialise in supporting people with CCJs and other credit challenges, and can connect you to the secured loan most suited to your situation.

It’s also important to remember you’re not on your own. Free, confidential debt advice is available from trusted organisations such as StepChange, National Debtline, and Citizens Advice. If you’re feeling uncertain, we always encourage speaking to an advisor before making any financial commitment.

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The amount you can borrow with a secured loan depends on your circumstances. Lenders will look at how much equity you have in your home, your income and regular expenses, your credit history, and the purpose of the loan. The more equity and affordability you can show, the higher the amount you may be able to access.

Typical borrowing ranges

• Lower end: Around £10,000–£15,000 (common for smaller projects or debt consolidation).
• Mid-range: £25,000–£100,000 (for bigger refurbishments, weddings, or consolidating multiple debts).
• High end: Up to £500,000+ with some lenders, usually for property investment or substantial projects.

How to find out your limit

Every case is different, so the best way to understand what’s available to you is to get an assessment based on your property value, equity, and finances. We can review your situation and connect you with lenders who fit your circumstances. This way, you’ll get a realistic picture of how much you could borrow without risking affordability.

And if you’re worried about stretching yourself too thin, don’t hesitate to get support. Free, confidential advice is available from organisations like StepChange, National Debtline, and Citizens Advice. Or, if you’d prefer guidance tailored to you, you can always speak with a secured loan advisor first.

Secured loans usually give you far more flexibility than personal loans. Repayment periods can be as short as three years or stretch up to 25–30 years depending on the lender, your equity, and what you can afford.

If you’re managing bad credit, a longer term might help reduce the monthly cost, but you’ll likely pay more interest in total. A shorter term is more expensive month-to-month but clears the balance sooner.

If you’re not sure what’s realistic, our team at Money Saving Advisors can show you which repayment options are available for your circumstances and what they’d look like in practice.

Interest rates on secured loans vary a lot. They depend on the amount you’re borrowing, how much equity you have in your home, the length of the loan, and your credit history. Even with bad credit, secured loan rates are usually lower than you’d find on credit cards or unsecured loans, because the loan is backed by your property.

As a rough guide, secured loans for bad credit files might start from around 7–8% APR for strong cases but can rise higher if your credit history has had problems. Lenders also add fees, so it’s important to look at the APRC (the annual percentage rate of charge) — this shows the full cost including fees and interest over the term.

If you want to know what’s realistic for your circumstances, the quickest way is to get a personalised secured loan quote. We can explain how rates are set and connect you with lenders who’ll consider your application, even with past credit challenges.

No — secured loans don’t usually require a guarantor. Because the loan is tied to your property, the lender already has security in place, which is why they’re often available even if your credit history isn’t perfect.

Guarantors are more common with unsecured loans for bad credit, where the lender has no collateral and wants extra reassurance. With a secured loan, your home fills that role.

That said, lenders will still want to see proof that you can afford the repayments. If you’re worried about qualifying or not sure what’s realistic, our advisors at Money Saving Advisors can talk you through which options are available to you.

Secured loans don’t pay out overnight, because lenders need to check your property details, run affordability checks, and sometimes arrange a valuation. If everything is straightforward, the process can be wrapped up in as little as one to two weeks. More complex cases — like if you’ve had credit issues, or if the lender needs extra documents — can take closer to three to four weeks.

If you’re looking for a same-day loan, a secured loan isn’t the right fit. Because the borrowing is tied to your property, lenders need time to check your income, run affordability tests, and sometimes arrange a valuation. That means even the fastest secured loans usually take at least one to two weeks to complete.

For urgent, short-term needs, people sometimes turn to credit cards, overdrafts, or payday loans — but those can come with very high costs and serious risks, especially if your credit is already stretched. A secured loan is better suited to planned borrowing, like consolidating debts or funding major improvements, where you can afford to wait for the process to run its course.

If you need help weighing up your options, our advisors at Money Saving Advisors can explain which secured loan providers are currently moving quickly and whether another type of finance might be more appropriate for short-term needs.

A rejection doesn’t mean you’re out of options. Every lender has their own rules, so one might say no while another is happy to take a closer look. Sometimes it’s as simple as the amount you applied for being too high, or the lender needing more equity than you currently have.

The first step is to find out why it was declined. That way you can decide whether to adjust your application, explore a different lender, or wait until your circumstances improve.

At Money Saving Advisors, we work with a wide panel of lenders — including those who specialise in helping people with poor credit — so if one application doesn’t go through, we can usually point you towards alternatives that fit better. Get a free quote for a bad credit secured loan.

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You can usually clear a secured loan before the end of the agreed term, but most lenders will charge a fee for doing so. This is called an early repayment charge (ERC). It’s the lender’s way of recovering some of the interest they expected to earn over the full term.

For example, if you borrowed £20,000 over 10 years but managed to repay after 5, the lender might apply a charge of 1–5% of the outstanding balance. The exact amount varies between lenders and is always set out in your loan agreement.

Repaying early can still save you money overall, because you’ll pay less interest in the long run — but it’s worth checking the numbers carefully first.

If you’re not sure how an ERC might affect your loan, an advisor can review your agreement and explain your options. That way you’ll know if it makes sense to pay off early or stick with your current plan. Get connected to a secured loan advisor.

Missing a repayment on a secured loan is serious, because your home is tied to the agreement. In the short term, the lender will usually contact you to arrange a catch-up payment or adjust your plan. If the missed payments continue, late fees and extra interest can be added, your credit score will drop further, and the lender may eventually take legal action. In the worst case, repeated missed payments can put your home at risk of repossession.

That said, most lenders would rather work with you than take that step. If you know you’re going to struggle, it’s always best to contact the lender early. If you’re worried about keeping up, you can contact debt advice organisations like Moneyhelper or we can talk you through what options are available to manage repayments before the situation escalates.

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