Equifinance secured loans review

Bottom line: Equifinance specialises in helping borrowers who've been turned down elsewhere, particularly those with recovering credit or non-standard income. Their manual underwriting approach means each case is assessed individually rather than by automated credit scoring. Equifinance's second charge mortgages can help you preserve the benefits of your first mortgage, such as avoiding early repayment charges on that deal and keeping your existing rate, while offering flexible repayment options. That said, mixed customer reviews and limited rate transparency mean it's worth comparing them against alternatives before committing.

Before looking at Equifinance specifically, it's worth understanding what an equifinance secured loan - or any secured loan - actually involves. A secured loan, sometimes called a second charge mortgage or homeowner loan, lets you borrow money using your property as security.

The key difference from your main mortgage is that a secured loan sits behind it as a "second charge." Your first mortgage takes priority if anything goes wrong, and the second charge lender is paid from whatever's left.

What this means for you

Your property acts as collateral for the loan. If you can't keep up with repayments, the lender can ultimately take legal action to recover their money, which could include repossessing your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.

This risk is one reason secured loans typically offer lower interest rates than unsecured personal loans. However, you need to think carefully before taking one out.

Repayment periods for secured loans can range from 3 to 25 years. Choosing a longer repayment period will reduce your monthly payments, but it will increase the overall cost of the loan because you'll pay more interest over time.

Common uses for secured loans

Debt consolidation is one of the most popular reasons people take out secured loans. By rolling multiple debts into a single monthly payment, you might reduce what you pay each month and simplify your finances. That said, if you consolidate short-term debts over a longer secured loan term, your monthly payments may be lower, but the overall cost of the loan can increase if you extend the repayment period, even at a lower rate.

Home improvements are another common use. Whether you're extending a kitchen, converting a loft, or renovating throughout, a secured loan can provide the funds you need. Some homeowners prefer a second charge mortgage to remortgaging because it preserves their existing mortgage rate and avoids early repayment charges on that deal, and it lets them repay the new loan flexibly without disturbing their first mortgage.

Major purchases like a new car, funding a wedding, or covering unexpected costs are also common reasons people consider secured borrowing as an alternative to unsecured credit.

Equifinance is a UK-based specialist lender that focuses exclusively on second charge mortgages. Unlike high street banks that offer secured loans as a small part of their product range, Equifinance has built its entire business around this one area of lending.

The company was incorporated in 2010 and is headquartered in Spitalfields, London. They're authorised and regulated by the Financial Conduct Authority. As a regulated lender, Equifinance is required to meet consumer protection standards around treating customers fairly. According to recent reports, Equifinance has originated more than £600 million in second charge mortgages since it began lending.

In June 2025, Equifinance secured a £95 million funding facility from Castlelake, a global alternative investment manager. This suggests the business has solid financial backing for its ongoing lending activities.

The company employs around 60 staff, predominantly based at its London office. It doesn't lend directly to the public but instead works exclusively through mortgage brokers and intermediaries. This means if you want an Equifinance loan, you'll need to apply through a broker like us rather than going to them directly.

What makes Equifinance different?

Their main differentiator is a manual underwriting approach. While many lenders rely heavily on automated credit scoring systems that can reject applications based on rigid criteria, Equifinance's underwriters assess each case individually. They look at your circumstances as a whole rather than letting a computer decide.

This approach makes them particularly suitable for borrowers who:

• Don't fit typical lending criteria, perhaps because they're self-employed, have irregular income, or have recently changed jobs
• Are recovering from past financial difficulties and have started rebuilding their credit but still carry marks on their credit file
• Have been declined elsewhere because their situation is too complex for standard automated assessments

Industry recognition

Equifinance was named a finalist for Best Second Charge Lender at the Financial Reporter Awards 2024, alongside competitors including Norton Home Loans, Pepper Money, United Trust Bank, and West One Loans. While they didn't win, the nomination suggests industry recognition of their position in the specialist lending market.

Equifinance offers several secured loan products designed for different borrower profiles. While specific product names and criteria can change, here's what's typically on offer.

Loan amounts range from £10,000 to £250,000, depending on your equity and circumstances.

Repayment periods run from 3 to 25 years, giving you flexibility to choose a term that makes sense for your budget and needs. Longer repayment periods mean lower monthly payments but more interest paid overall.

Both fixed and variable rates are available. Fixed rates give you payment certainty for a set period, while variable rates can go up or down depending on market conditions, which may offer flexibility but also means your repayments could change over time.

In some cases, Equifinance allows borrowers to repay their loans early without incurring early repayment charges.

Funds can be used for various purposes including debt consolidation, home improvements, major purchases, or other needs. The flexible loan structure suits a range of uses and financial situations.

Equifinance sets rates individually based on your circumstances, so there's no single headline rate that applies to everyone. Rather than quoting a representative example that may not reflect what you'd actually pay, it's best to speak to an advisor for current figures based on your situation.

What affects your rate?

Several factors determine the rate you're offered:

• Loan-to-value ratio plays a significant role. The more equity you have in your property relative to what you want to borrow, the lower your rate is likely to be. Borrowing 60% of your available equity is typically cheaper than borrowing 80%.
• Your credit history matters, though Equifinance is more flexible than many lenders. If you have adverse credit, expect to pay a higher rate than someone with a clean credit file. However, unlike automated lenders, they'll consider the context around any credit issues rather than rejecting you outright.
• Your income and affordability are assessed to make sure you can comfortably manage the repayments alongside your existing commitments.
• The property type and location can also affect your rate. Standard properties in typical locations tend to get better rates than unusual property types.

When considering loan terms, remember that longer repayment periods can lower your monthly payments but will increase the overall cost of the loan because you'll pay more interest over time. Comparing multiple lenders and products is one of the best ways to find a rate that suits your situation.

Fees to expect

• Lender arrangement fee: Equifinance typically charges a fee of a few hundred pounds for processing and administration.
• Broker fee: if you apply through a broker, you'll likely pay an additional broker fee. This can range from around £1,000 to £4,000 or more, depending on the broker and loan amount.
• Valuation fee: a property valuation is required to confirm your home's value and calculate the loan-to-value. This cost is usually passed on to you and can range from around £150 to £500 or more, depending on property value.
• Legal fees: you'll need a solicitor to handle the legal work. Expect to pay somewhere in the region of £300 to £600 for this.

Early repayment charges

Equifinance may charge early repayment penalties if you pay off your loan before the agreed term ends. The exact structure varies by product, but these charges can be significant, particularly in the early years of the loan. Some customer reviews mention frustration with early repayment costs, so make sure you understand these before signing anything.

To apply for an Equifinance secured loan, you'll need to meet certain criteria. Equifinance takes a flexible approach to income verification and credit history, but there are some baseline requirements.

Income assessment

Equifinance takes a flexible approach to income verification. While they'll typically want to see three months' payslips or bank statements for employed applicants, they're also willing to consider:

• Self-employed income based on one or two years' accounts (some lenders require three)
• Contract workers with ongoing contracts
• Income from multiple sources
• Pension income for older borrowers
• Irregular income patterns if you can demonstrate overall affordability

Credit history considerations

One of Equifinance's strengths is their willingness to consider applicants with imperfect credit. Equifinance doesn't use automated credit scoring and instead assesses each applicant's personal circumstances and credit history as a whole, rather than relying solely on a credit score. Several factors affect their assessment:

• Time since credit events: the longer ago any negative marks occurred, the more favourably they'll be viewed. A default from five years ago is treated very differently from one registered last month.
• Severity of credit issues: minor blips like a single missed payment are easier to overlook than more serious issues.
• Whether issues are satisfied: debts that have been paid off, even if they were once in default, are viewed more positively than outstanding unpaid defaults.
• Your current credit behaviour: evidence that you're managing credit responsibly now, even if you had problems in the past, works in your favour.

Since Equifinance only works through intermediaries, you can't apply directly. Applying for a secured loan involves more paperwork than an unsecured loan, due to the need for a property valuation and legal checks. Here's how the process typically works when you apply through us.

From application to funds in your account typically takes 2 to 4 weeks, though complex cases may take longer. The main variables are valuation scheduling, underwriting queries, and legal processes.

Equifinance's customer service is primarily UK-based, and borrowers are typically assigned a case manager during the application process. Their customer service team is generally praised for professionalism.

Contact options

• Phone support is available during business hours. The company can be reached on 020 8090 6190.
• Email communication is used throughout the application process.
• The customer service team is available to support account holders throughout the life of their loan, addressing queries or changes in financial circumstances as they arise.
• There's no online account portal for existing customers, which is a limitation compared to some competitors.

As they only work through brokers, most customer contact goes through your intermediary rather than directly with Equifinance.

Customer feedback themes

Based on reviews from Trustpilot and other platforms, customer experiences with Equifinance are mixed.

Positive feedback highlights: some customers praise the straightforward application process and responsive advisors. Broker partners have mentioned good turnaround times on cases and supportive underwriters who work to find solutions for tricky applications.

Negative feedback themes: the most common complaints relate to:

• Communication issues: some customers report delays in responses or difficulty getting updates on their applications, especially when handling complaints or involving external bodies like the Financial Ombudsman Service.
• Early repayment charges: several reviews mention frustration with the costs of paying off loans early, particularly in difficult circumstances such as bereavement.
• Account management: complaints about aggressive communication over minor arrears, including one reviewer who described receiving a letter threatening a field agent visit over a small, disputed arrears balance.
• Limited online access: the lack of an online portal for managing accounts means customers must phone or email for any account queries.

Trustpilot rating context

Equifinance has a rating of approximately 2.3 out of 5 on Trustpilot, based on a relatively small number of reviews. It's worth noting that:

• Trustpilot reviews tend to skew negative for financial products, as unhappy customers are more likely to leave reviews than satisfied ones
• Review volume is low compared to larger lenders, which makes averages more volatile
• Some complaints relate to declined applications, which is inevitable for any lender

That said, the consistent themes around communication and early repayment handling suggest areas where Equifinance could improve, particularly in keeping account holders informed throughout the life of their loan.

Advantages

• Manual underwriting approach: each case is assessed individually by experienced underwriters rather than being rejected by automated systems. This gives you a better chance of approval if your circumstances are non-standard.
• Flexible on credit history: they're willing to consider borrowers with past credit problems who are now recovering, giving a second chance to people mainstream lenders reject.
• Self-employed friendly: more accommodating than many lenders when it comes to irregular income or non-standard employment situations.
• Financial Conduct Authority regulated: full regulatory protection and adherence to consumer credit rules, giving you complaint rights through the Financial Ombudsman Service if things go wrong.
• Industry recognition: a finalist for Best Second Charge Lender awards, suggesting peer recognition of their market position.
• Solid financial backing: a recent £95 million funding facility suggests business stability.
• Benefits of second charge mortgages: Equifinance secured loans let you preserve the benefits of your first mortgage, avoid disturbing that deal, and offer flexible repayment options.

Disadvantages

• Mixed customer reviews: a Trustpilot rating of 2.3 out of 5 indicates significant customer dissatisfaction, particularly around communication and account management.
• No direct application: you must apply through a broker, which means an additional broker fee on top of lender costs.
• Limited online functionality: no customer portal for account management means you're reliant on phone and email contact.
• Early repayment charge concerns: customer reviews suggest these can be significant and aren't always clearly communicated upfront.
• Rate transparency: actual rates vary significantly by circumstance, and it's hard to get an indicative rate before applying.
• Property at risk: as with all secured loans, your home is at risk if you can't keep up repayments. This is a fundamental risk with any second charge mortgage, not specific to Equifinance.

The UK second charge mortgage market has several specialist lenders. It's worth comparing Equifinance with other providers to make sure you find the right deal for your circumstances.

• Equifinance: £10,000 to £250,000, up to 80% loan-to-value, terms up to 25 years, manual underwriting, broker-only
• United Trust Bank: £10,000 to £500,000, up to 85% loan-to-value, terms up to 30 years, broker-only
• Pepper Money: £5,000 to £500,000, up to 85% loan-to-value, terms up to 30 years, broker-only
• Norton Home Loans: £5,000 to £500,000, up to 95% loan-to-value, terms up to 30 years, manual underwriting, broker-only

All four lenders consider applicants with adverse credit and self-employed income.

When Equifinance might be the better choice

• If you've been declined elsewhere because of complex circumstances that automated systems can't assess fairly
• If your credit is recovering but not yet perfect, and you need a lender who'll look at the full picture
• If you're self-employed with irregular income patterns
• If your situation is complicated and you need a human underwriter to assess it properly

When alternatives might suit you better

• If you need to borrow more than £250,000
• If you need loan-to-value above 80%
• If you'd prefer a lender with stronger customer reviews
• If you want online account management

Ideal candidates

• Homeowners recovering from financial difficulties. If you had credit problems in the past but are now back on track, Equifinance's manual underwriting gives you a fair assessment rather than automatic rejection.
• Self-employed borrowers with complex income. Their flexible approach to income verification means you're more likely to get a fair hearing than with lenders relying on rigid automated criteria.
• Those declined elsewhere. If mainstream lenders have said no, Equifinance might say yes because they look at circumstances automated systems miss.
• Borrowers who value personal service. The manual underwriting approach means real people consider your application, not just algorithms.
• Borrowers unable to remortgage their first mortgage. If you can't remortgage or switch your main mortgage, a second charge mortgage from Equifinance can be a flexible way to access funds without disturbing your existing deal.

Poor fit

• Borrowers needing large amounts. With a £250,000 maximum, those needing more should look at larger-capacity lenders such as United Trust Bank or Pepper Money.
• Those with minimal equity. The 80% maximum loan-to-value means you need substantial equity. Lenders such as Norton offer higher loan-to-value ratios.
• People who want digital self-service. The lack of an online portal might frustrate those who prefer managing accounts digitally.
• Rate-sensitive borrowers with strong credit. If you have excellent credit and straightforward circumstances, you might get a better rate from a mainstream lender.

Equifinance fills an important gap in the UK lending market. Their manual underwriting approach and willingness to consider complex circumstances makes them a genuine option for borrowers who don't fit mainstream criteria.

If you've been declined elsewhere because of recovering credit, self-employed income, or an unusual situation that automated systems can't properly assess, Equifinance deserves consideration. Their experienced underwriters look at the full picture rather than rejecting based on a credit score alone.

That said, the mixed customer reviews are a concern. While some borrowers report positive experiences, others describe communication problems, frustration with early repayment charges, and heavy-handed arrears handling. The 2.3 out of 5 Trustpilot rating, while based on limited reviews, suggests there's room for improvement in customer experience.

Our recommendation: Equifinance is worth considering if you're a homeowner with non-standard circumstances who needs access to secured finance. Their flexible, manual approach often makes sense for borrowers whose situations don't fit the usual lending criteria.

But don't assume they're your only option. Before committing, it's worth comparing Equifinance against alternatives. As brokers, we compare a wide range of lenders to find a suitable match for your specific situation. Even if Equifinance seems suitable, you might find better terms elsewhere.

If Equifinance does turn out to be the right choice for you, make sure you fully understand the fees, early repayment charges, and total cost of the loan before signing. Get everything in writing and don't feel pressured to accept the first offer.

We can help you compare Equifinance against other lenders to find a suitable secured loan for your circumstances. Applications for Equifinance loans are done through qualified brokers, and you can access expert advice with no pressure to proceed.

What we offer

• Access to Equifinance plus a wide range of other providers. We compare a wide range of lenders, not just one.
• Unbiased, expert advice based on your needs. We're not tied to any single lender, so we recommend what genuinely fits your situation.
• Application support throughout. From initial enquiry through to funds being released, we guide you through every stage.
• No impact on your credit score for initial checks. We use soft searches to assess eligibility before any hard credit checks.