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Secured Loans
Borrowing £150,000 secured against your property gives you access to a larger sum than most personal loans allow, repaid over a term you choose. Here's how much equity you need, what it costs, and how the process works.
Most secured loan lenders cap combined borrowing at around 85% of your property's value (combined loan-to-value, including your existing mortgage). As a guide, to borrow £150,000 your property's value minus your outstanding mortgage balance generally needs to leave at least £176,500 in equity, so your total borrowing stays within that 85% limit.
Your credit history, income, and the type of property also affect how much you can borrow and which lenders will consider your application. Speak to an advisor to get a clear picture of what's realistically available for your circumstances.
A £150,000 secured loan uses your property as collateral, which means the lender takes on less risk and can offer larger amounts at more competitive terms than unsecured borrowing typically allows. Also known as a second charge mortgage or homeowner loan, it sits alongside your existing mortgage and is usually repaid over a fixed term of 5 to 30 years.
Because your home secures the loan, you can typically borrow significantly more than with a personal loan, which usually caps out at around £25,000 to £35,000. An unsecured loan doesn't require collateral, so the lender relies solely on your creditworthiness, and that keeps the amounts they'll lend much lower.
At £150,000, you'll need substantial equity in your property to qualify. Most lenders set a maximum combined loan-to-value of around 85%, meaning your existing mortgage plus the new secured loan can't exceed 85% of your property's current value. You'll also usually need to be a UK resident with a regular income.
If you'd like a fuller breakdown of the mechanics before going further, our guide on applying for a secured loan covers the process in more depth.
Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
At this loan size, the equity test catches more people out than the credit check does. Before you get too far into the process, work out your property's likely value and subtract your mortgage balance. That tells you almost immediately whether £150,000 is realistic.
Lenders look at your overall financial picture, not just one factor, before deciding what to offer on a £150,000 secured loan. Understanding what they're assessing helps you identify where you might be able to improve your position.
Your property equity is the primary constraint on borrowing £150,000. With most lenders capping combined borrowing at 85% loan-to-value, you'll generally need a property worth considerably more than your outstanding mortgage.
Example: if your property is worth £400,000 and your mortgage balance is £200,000, you have £200,000 equity (50% loan-to-value). Borrowing £150,000 would take your total borrowing to £350,000, a combined loan-to-value of 87.5%. That's above most lenders' 85% limit, so you'd either need to borrow less or find a specialist lender willing to go higher, usually on less favourable terms.
Generally, the more equity buffer you have above the limit, the more lenders, and the more competitive terms, you're likely to have access to.
Your credit profile is one of the biggest factors in what you're offered. Lenders assess your credit score, payment history, and any adverse markers such as defaults or missed payments.
Recent credit issues tend to matter more than older ones. A missed payment from five years ago carries less weight than one from six months ago. If you have adverse credit, specialist lenders can still help, but expect noticeably less favourable terms than someone with a clean credit history.
Even with sufficient equity, lenders need to confirm you can afford the repayments. They'll assess your income against your existing commitments, typically allowing secured loan and mortgage payments combined to take up no more than around 40 to 45% of your net monthly income.
Self-employed borrowers may face additional scrutiny. Most lenders want two years' trading history and accounts, though some will accept one year for established businesses with strong income.
Standard properties (houses, flats, and bungalows in good condition) qualify for the widest range of lenders and the most competitive terms. Non-standard construction, such as timber frame, concrete, or thatched roofs, or unusual properties may limit your options.
Properties valued under £100,000 or in areas with limited market activity can also face restrictions, as lenders consider how easily the property could be resold if it ever came to that.
Not sure where you stand?
Every lender weighs equity, credit history, and income differently. Speak to an advisor to see which options suit a £150,000 secured loan application in your circumstances.
The rate you're offered is only part of the cost of borrowing £150,000. You'll also need to budget for lender fees, arrangement fees, a professional valuation, and legal costs, and it's worth checking whether the loan carries any early repayment charges.
Here's what to expect in upfront and arrangement costs when borrowing at this level. Costs vary between lenders, so always ask for a full breakdown before you commit.
Some lenders let you add these setup costs to the loan amount, spreading them over the term. That reduces what you pay upfront but increases your total borrowing and the total interest you'll pay over time.
Our secured loan calculator can help you get a rough sense of how term length and loan size affect your repayments, though your advisor can give you accurate figures based on current rates.
When you're comparing £150,000 secured loan offers, don't just look at the headline rate. A lower rate with high fees can sometimes cost more overall than a slightly higher rate with low fees, especially over a shorter term. Ask each lender, or your advisor, for the total amount repayable over the full term, including all fees, so you're comparing like for like.
A £150,000 secured loan is a significant financial commitment, and it deserves careful thought before you go ahead. Here are the key risks to weigh up.
This isn't just small print. Your home is genuinely at risk if you can't keep up with repayments. The lender holds a legal charge over your property, and if you fall into arrears, they can ultimately force a sale to recover what's owed. Repossession is generally a last resort, but it's a real consequence to understand before you borrow.
Before borrowing £150,000, it's worth honestly asking:
If you're already stretching to afford the payments, a secured loan may not be the right option.
At £150,000 over 15 to 25 years, you're committing to substantial monthly payments for potentially decades. Your circumstances can change significantly over that time: redundancy, illness, relationship breakdown, or other life events could affect your ability to pay. It's worth thinking about whether you'd have appropriate protection in place, such as income protection or life insurance, for your family.
Most secured loans include early repayment charges if you pay off the loan within a set period, typically the first 1 to 5 years. These are usually calculated as a percentage of the outstanding balance, and tend to be higher earlier in the term. If there's a chance you'll want to move house, remortgage, or repay the loan early, check the terms carefully before you commit.
A £150,000 secured loan reduces your available equity and increases your overall debt. This can limit your options if you want to remortgage, move house, or borrow again in future, since lenders will take your secured loan into account when assessing any new application.
If you're struggling financially or worried about keeping up with repayments, speak to your lender as early as possible. You can also contact MoneyHelper (moneyhelper.org.uk, 0800 138 7777) for free, independent guidance.
A £150,000 secured loan is considered a large loan, and it tends to suit homeowners with a specific, substantial funding need and enough equity to support the borrowing. The most common reasons people borrow at this level are home improvements, debt consolidation, and business purposes.
Major renovation projects, extensions, loft conversions, or full home improvement projects often need budgets around £150,000. A secured loan lets you fund the whole project upfront, and a well-planned renovation can add value to your property that offsets some or all of the borrowing cost.
Example: Marcus, from Birmingham, needed £150,000 for a two-storey extension and full kitchen renovation. With a property valued at £450,000 and £180,000 remaining on his mortgage, he had plenty of equity, comfortably below 60% combined loan-to-value even after the new loan. The extension added an estimated £120,000 to his property's value.
Combining multiple debts into a single secured debt consolidation loan can reduce the number of payments you're juggling each month and simplify your finances, though extending your repayment period usually means paying more interest overall across the life of the loan.
Example: Claire, from Leeds, had built up £150,000 across credit cards, a personal loan, and a car finance agreement, with combined monthly payments that were becoming difficult to manage. Consolidating into a single secured loan over a longer term freed up cash flow each month, though she'll pay more in total interest over the extended term, a trade-off she made for improved monthly affordability.
Self-employed people and business owners sometimes use secured loans for business investment, purchasing equipment, or working capital, particularly when dedicated business finance would be more expensive or harder to arrange.
Example: David and Sarah, both directors of their family business, needed £150,000 to buy equipment and expand their warehouse. Rather than take out business finance, they secured a homeowner loan against their family home, which was valued at £650,000 with £200,000 outstanding on the mortgage.
Different types of lender suit different circumstances. Here's what to expect from each when you're looking to borrow £150,000.
Lender types
At this loan size, the difference between a well-matched lender and a poor fit can be significant over the life of the loan.
Several practical steps can improve your position when you're borrowing £150,000.
Gather proof of income, identification, proof of address, and details of your property before you apply. Having everything ready speeds up the process considerably.
If you're not in a rush, spending 3 to 6 months improving your credit score before applying could make a meaningful difference to the terms you're offered. Pay down credit card balances, make sure you're on the electoral roll, and avoid taking out new credit in the months before you apply.
A modest improvement in your credit score, from fair to good, can genuinely change the terms a lender is willing to offer at this loan size. It's often worth the wait if you're not under time pressure.
While you might be eligible for £150,000, it's worth considering whether you actually need the full amount. Borrowing a little less reduces both your monthly payments and the total interest you'll pay over the term.
The shortest term you can comfortably afford will minimise your total interest. It's worth asking your advisor to talk through different terms so you can find the right balance between manageable monthly payments and overall cost.
Having your paperwork prepared in advance speeds up the application and shows lenders you're organised:
Don't accept the first rate you're offered. Even if your own bank offers a secured loan, you may find a better fit elsewhere. Comparing across a wide range of lenders helps you identify the most suitable options for your circumstances.
Here's what to expect when you apply for a £150,000 secured loan through Money Saving Advisors.
How it works
Initial consultation
We'll discuss your requirements, circumstances, and preferences, to understand which lenders are most likely to offer competitive terms for your situation. This conversation typically takes 15 to 20 minutes and involves no commitment.
Eligibility check
We'll run a soft search to check your eligibility with suitable lenders. This doesn't affect your credit score and gives an early indication of the terms that might be available.
Full application
Once you've chosen a product, we'll submit a full application on your behalf, including all documentation. This triggers a full credit check, and most lenders provide a decision within 24 to 48 hours.
Valuation
The lender arranges a valuation of your property to confirm it supports the borrowing. This typically takes 5 to 10 working days and may be a physical inspection or a desktop valuation, depending on the lender and property.
Legal work
Solicitors handle the legal paperwork, including registering the lender's charge against your property. This usually takes 2 to 4 weeks.
Completion
Once everything is in place, funds are released, typically within 4 to 6 weeks of the initial application, though urgent cases can sometimes complete faster.
Before committing to a secured loan, it's worth considering whether an alternative might suit your needs better.
Other options
Remortgage
If you have significant equity, remortgaging your entire property might offer more competitive terms than a second charge loan. You'd replace your existing mortgage with a larger one, releasing the extra funds you need. You may lose a favourable existing mortgage rate, and early repayment charges on your current deal can make this a longer, more involved process.
Further advance
Your existing mortgage lender might offer additional borrowing on your current mortgage. This is similar to a remortgage but without switching lenders, and is often a simpler process, though the terms may not be as competitive and you're limited to what your current lender will offer.
Personal loan
If you only need part of the £150,000, a personal loan lets you borrow without putting your home at risk. The trade-off is a much lower maximum amount, typically £25,000 to £35,000, and usually a shorter term.
Business finance
If the funds are for business use, dedicated business finance might be more appropriate and potentially more tax-efficient, since interest can be tax-deductible. It usually requires business accounts and trading history, and terms can be less favourable than secured lending.
Common questions
Yes. Specialist lenders regularly work with borrowers who have <a href="/loans/secured-loans/bad-credit/">adverse credit</a>, including defaults, missed payments, and past debt issues. You'll typically be offered less favourable terms than someone with a clean credit history, and lenders may apply stricter equity requirements. It's worth speaking to an advisor even if you've been declined elsewhere, since criteria vary a lot between lenders.
Most lenders cap combined borrowing at around 85% loan-to-value. As a guide, that means your property's value minus your existing mortgage needs to leave at least roughly £176,500 in equity, so your total borrowing stays within that 85% limit. Properties worth £400,000 or more with a moderate existing mortgage typically have enough equity, though it depends on your individual circumstances.
They're the same thing. 'Secured loan', 'second charge mortgage', and 'homeowner loan' all refer to borrowing secured against your property that sits alongside your existing mortgage. The terminology varies, but the product is identical.
Most lenders accept a wide range of purposes, including home improvements, debt consolidation, large purchases, business investment, and school fees. Some lenders restrict certain uses, such as business purposes or property investment, but across our panel of lenders most legitimate uses are covered.
From application to funds landing in your account typically takes 4 to 6 weeks. This includes credit checks, valuation, and legal work. Urgent cases can sometimes complete in 2 to 3 weeks, while more complex applications may take longer.
Initial eligibility checks use a soft search that doesn't affect your credit score. A hard search only appears on your credit file if you go ahead with a full application. Multiple hard searches in a short space of time can temporarily lower your score, which is one reason it helps to use a broker who can check eligibility across several lenders with a single soft search.
Yes, but check the early repayment charges first. Most loans include these during an initial period, typically the first 1 to 5 years, calculated as a percentage of the outstanding balance. After that period, you can usually repay without penalty.
Contact your lender immediately if you're struggling. They must work with you to find solutions before taking enforcement action, which might include payment holidays, reduced payments, or term extensions. Ignoring the problem makes it worse. Ultimately, if payments consistently aren't made, the lender can apply to repossess and sell your property, which is the fundamental risk of secured borrowing. Free and impartial guidance is also available from MoneyHelper (moneyhelper.org.uk, 0800 138 7777).
It depends on your circumstances. A secured loan is often the better option if you have a competitive existing mortgage rate you don't want to lose, need funds quickly, or have circumstances that make remortgaging difficult. Remortgaging might suit you better if you can access significantly more competitive overall terms or want everything combined into a single payment.
No. The loan is secured against equity you already have in your property, not against additional funds you provide.
Yes, though you'll typically need two years' trading history and accounts. Some lenders accept one year for established businesses with strong income. Specialist <a href="/loans/secured-loans/self-employed/">self-employed secured loan</a> lenders on our panel understand complex income structures.
Typically you'll need proof of identity, proof of address, your last 3 months' bank statements, proof of income (payslips or business accounts), details of your existing mortgage, and information about your property. We'll confirm exactly what's needed after your initial conversation with an advisor.
Yes, some lenders offer secured loans against investment properties. Terms are typically less favourable than for residential properties, and you'll need to demonstrate sufficient rental income or other earnings to support the payments.
A lower valuation might reduce the amount you can borrow, or affect your terms if it pushes your loan-to-value higher. Your advisor will talk through your options if this happens, which might include accepting a lower loan amount, trying a different lender, or in some cases challenging the valuation.
Secured loans usually carry higher rates than a standard mortgage, because the second charge lender is paid after your main mortgage lender if your property is repossessed and sold. Speak to an advisor to compare how a secured loan and a mortgage-based option, such as remortgaging or a further advance, would work out for your circumstances.
What our clients say
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Secured Loans
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