Buying a Home
Remortgaging
Landlord
Specialist
Secured Loans
Debt Consolidation
Conveyancing
Finding a Solicitor
Secured Loans
Secured loan lenders differ in their loan-to-value limits, credit criteria, fees, and speed. Here's what to compare before choosing one, and why speaking to an advisor first can help you avoid applying to the wrong lender.
To compare secured loan lenders properly, look beyond the headline offer and check how each one measures up on the factors that actually affect your application and your costs.
Because no single lender suits every situation, most homeowners get a clearer picture by comparing several lenders at once rather than approaching them one by one. This is where speaking to an advisor who works across a wide panel of lenders can help.
When you compare secured loan lenders, you'll find the market is more varied than a single list of offers might suggest. Lenders differ in who they'll accept, how they assess affordability, and how flexible they are if your circumstances aren't entirely straightforward.
Broadly, secured loan lenders fall into four groups.
A small number of high street banks offer secured loans, usually to homeowners with clean credit and lower borrowing relative to their property value. They can be competitive if you meet their criteria, but their lending is often the strictest of the four groups.
Building societies often take a more manual approach to underwriting. This can work in your favour if you're self-employed, have a slightly complex income, or don't quite fit an automated lender's tick-box criteria.
Specialist lenders focus on cases that mainstream providers turn down, including adverse credit, higher loan-to-value borrowing, or less standard property types. They're generally more flexible, though this flexibility is usually reflected in the fees and terms on offer.
Some lenders only work through intermediaries rather than dealing directly with the public. Because they don't carry the overheads of a high-street presence, they can sometimes offer more competitive terms, but you'll usually only find them by going through a broker with access to their panel.
Here's a general summary of how these lender types compare.
Why compare with us
Once you understand the different types of lenders, the next step is knowing what actually varies between them. A secured loan is a serious, long-term commitment, so it's worth taking time to compare more than just the first offer you're shown.
The main factors that differ from lender to lender include:
We've expanded on the credit and fee factors below, as these tend to have the biggest impact on which lenders will consider your application.
Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it. Comparing lenders on cost alone, without considering affordability over the full term, is one of the most common mistakes we see.
The lowest headline offer isn't always the cheapest lender once you add fees and early repayment charges. We always encourage people to compare the total cost of a loan over its full term, not just the figure they're quoted upfront.
Key factors
Compare lenders
We compare secured loan lenders based on your credit history, equity, and borrowing needs, then explain the differences in plain terms.
Your credit history is one of the biggest factors in which lenders will consider your application, and it affects far more than just eligibility for the most competitive terms.
Lenders generally group applicants into risk tiers based on the severity and recency of any credit issues, rather than looking at a single credit score figure. A minor late payment from several years ago is treated very differently to a recent default or an unsatisfied county court judgment.
If you're not sure where you sit, it's worth getting your credit report from one of the main credit reference agencies before applying. Correcting any errors, or reducing credit card balances in the months beforehand, can sometimes open up more lender options.
If you're considering a secured loan to consolidate existing debts and you're worried about your financial situation, it's worth speaking to a free, independent debt advice service first. MoneyHelper (0800 138 7777) offers free guidance and can talk through your options before you take on further borrowing secured against your home.
Fees can add thousands of pounds to the cost of a secured loan, so they're just as important to compare as any other lending criteria.
Not every lender charges every fee, and some let you add certain costs to your loan rather than paying upfront, though this means you'll pay interest on them for the full term.
Early repayment charges are worth checking carefully if there's a chance you'll want to clear the loan before the end of the term, for example if you're planning to sell your property or expect a lump sum. These charges are usually calculated as a percentage of your outstanding balance and reduce over time.
Ask whether fees can be reduced or waived, particularly for larger loans or if you have a strong credit history. Some lenders let you choose between a lower fee with a higher cost elsewhere, or vice versa, so always compare the total cost rather than one figure in isolation.
How it works
Tell us about your circumstances
Share details about your property, income, and what you need to borrow.
We search our panel
We identify lenders whose criteria are most likely to suit your credit profile and equity position.
Compare your options
Your advisor explains the differences between suitable lenders in plain terms.
Apply with support
If you decide to proceed, we help manage the application through to completion.
Once you know what to look for, you have two ways to compare secured loan lenders: approach lenders directly, or use a broker who compares a wide range of lenders on your behalf.
Going direct means dealing with one lender at a time, filling out separate applications, and hoping their criteria happen to match your circumstances. If they decline you, you start again elsewhere, and every application can leave a mark on your credit file.
Using a broker means answering questions once, then having your circumstances matched against a wider panel of lenders, including some that don't deal directly with the public. Your advisor can explain the differences between suitable options in plain terms, rather than leaving you to interpret criteria, fees, and terms alone.
Neither approach removes the need to think carefully about affordability. Whichever route you choose, make sure you understand the full cost of the loan, not just the headline terms, before signing anything.
Common questions
High street banks generally offer secured loans to homeowners with clean credit and lower borrowing relative to their property value, with fairly strict criteria. Specialist lenders focus on cases mainstream banks turn down, including adverse credit, higher loan-to-value borrowing, or complex income, and are usually more flexible in how they assess an application.
Yes. An initial eligibility check usually involves a soft credit search, which doesn't affect your credit score and isn't visible to other lenders. A full application later triggers a hard credit search with whichever lender you choose to proceed with.
It depends on your circumstances. Going direct can work if you already know a lender's criteria suit you. Using a broker means your circumstances are matched against a wider panel of lenders, including some that don't deal directly with the public, which can be helpful if your situation is more complex.
No. Arrangement fees, valuation fees, legal fees, and broker fees all vary between lenders, and some let you add certain costs to your loan balance rather than paying upfront. It's worth comparing the total cost of borrowing, not just one fee in isolation.
Lenders look at the equity in your property, their maximum loan-to-value limit, and your affordability based on income, existing commitments, and living expenses. Different lenders set different loan-to-value limits, which is one reason the amount you're offered can vary between them.
You can apply to a different lender, though every full application can leave a mark on your credit file. Comparing lenders first, or working with an advisor who can identify suitable options before you apply, helps reduce the number of applications you need to make.
Yes. A smaller number of specialist lenders focus specifically on adverse credit, including defaults, missed payments, or historic debt issues. Your options will usually be more limited than with a clean credit history, but they do exist.
An initial comparison and eligibility check can be done quickly, often within a day. The full application process, including a property valuation and legal work, typically takes several weeks from start to finish, so it's worth starting the comparison stage early if you have a deadline in mind.
What our clients say
Shortly after I spoke with Anna, she was also very helpful and made it effortless and a nice experience.
Had a really good experience regarding arranging a secured loan. They introduced me to a great advisor. Thanks for the help.
For once a loan transaction without stress and complications. Very impressed and highly recommended.
Thrilled to share my exceptional experience with Money Saving Advisors. The website made it incredibly simple and easy to connect with an advisor. They helped me find the best deal on my remortgage and secured a very competitive interest rate!
Great advice and money saved on mortgage.
I have previously declined a loan of the value I needed from various brokers, but this website found me a reputable broker with surprisingly decent rates.
Secured Loans
Compare rates from a wide range of lenders. Our expert advisors will find the right secured loan for your circumstances.
