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Secured Loans
Step One Finance offers secured loans up to 95% loan-to-value for homeowners in England, Wales, and Scotland. Here's an honest look at their fees, eligibility criteria, and how they compare to other specialist lenders.
Step One Finance is a specialist secured loan lender best known for its 95% loan-to-value (LTV) limit, one of the highest in the UK secured loans market. It's a good option for homeowners in England, Wales, or Scotland with limited equity who need to borrow between £5,000 and £250,000, but it isn't the right fit for everyone.
Step One Finance is authorised and regulated by the Financial Conduct Authority and works exclusively through brokers, so you'll need to apply through a broker or comparison service rather than going direct.
Overall, Step One Finance suits homeowners who specifically need high LTV borrowing or whose circumstances don't fit mainstream lenders. If you have more equity available, other lenders may offer a better fit.
If you're weighing up a Step One Finance secured loan, you're probably deciding whether their high loan-to-value limits and flexible criteria justify what you'll pay. This review covers everything you need to know about Step One Finance secured loans, from fees and eligibility to customer feedback and how they compare to alternatives.
Overall rating: 3.5 out of 5
Bottom line: Step One Finance fills an important gap for homeowners with less available equity who need a secured loan. Their 95% LTV offering stands out in a market where most lenders cap at 85-90%. This isn't the cheapest borrowing available though - high-LTV lending typically costs more, and their affordability assessments can be strict. It's best suited to homeowners who specifically need the high LTV option or whose circumstances don't fit mainstream lenders.
The jump from 90% to 95% LTV sounds small, but it can be the difference between qualifying for a secured loan and not qualifying at all if your equity is limited. Just remember that the highest LTV tiers usually come with a higher rate, so it's worth checking whether a smaller loan at a lower LTV works out cheaper overall.
Before looking at Step One Finance's specific offering, it's worth understanding what you're actually applying for. A secured loan, also called a homeowner loan or second charge mortgage, uses your property as collateral. It sits behind your main mortgage, which is why it's sometimes called a 'second charge'. Step One Finance specialises in this type of second charge lending.
The key difference from remortgaging is that you keep your existing mortgage intact. This matters if you have a competitive rate you don't want to lose, face early repayment charges on your mortgage, or your circumstances have changed since you took out your first mortgage.
Step One Finance operates as a direct lender, not a broker. If your application is approved, they're the ones actually lending you the money and managing your account throughout the loan term. However, they work exclusively through broker channels rather than accepting direct applications from the public, so you'll typically access their products through a mortgage broker or comparison service like ours.
Your loan is secured against the equity in your home - the portion of your property you own outright. For example, if your home is worth £300,000 and your outstanding mortgage is £200,000, you have £100,000 in equity. A secured loan lets you borrow against some of this equity while leaving your existing mortgage unchanged.
The second charge element means Step One Finance's loan sits behind your main mortgage in the queue if anything goes wrong. Your first mortgage lender gets paid first from any property sale. This affects risk for the lender, and therefore the rate you'll be offered.
Secured loans
Speak to an advisor about your circumstances. We compare a wide range of lenders, including Step One Finance, to find options that fit your equity, income, and credit history.
Understanding the true cost of a Step One Finance loan means looking beyond the headline rate. Step One Finance offers flexible repayment periods ranging from 6 to 30 years, so you can choose a term that fits your budget.
Step One Finance offers both variable and 5-year fixed rates. As with most secured loan lenders, your exact rate depends on your circumstances rather than a single published figure. Because rates change frequently, speak to an advisor for current pricing rather than relying on any example you've seen elsewhere.
Rate factors that affect your offer:
Fixed vs variable rate trade-offs: Step One Finance's 5-year fixed rate gives you payment certainty for the initial period. After those five years, you'll move to their standard variable rate for the remainder of the term, which tracks their internal rate and can fluctuate with market conditions. The gap between the lowest and highest rates on offer can add up to a meaningful difference in your monthly repayment over a 15-year term, so always ask for the total repayable figure, not just the monthly payment, before deciding.
The term you choose has a significant impact on the total cost of your loan. A shorter term means higher monthly payments but less interest paid overall. A longer term reduces the monthly payment but increases the total interest you'll pay over the life of the loan.
Ask your advisor for a full illustration showing the total amount repayable, including all fees, before you commit to a term.
Don't just compare the lender fee in isolation. A lower lender fee with a higher rate can cost more overall than a higher fee with a lower rate. Ask for a total cost comparison across the term you actually plan to keep the loan for, not just the monthly figure.
Step One Finance positions itself as a specialist lender with more flexible criteria than high street banks, but you'll still need to meet certain requirements.
To qualify for a Step One Finance secured loan, you must:
Step One Finance assesses affordability individually rather than applying blanket rules.
Employment types accepted: employed, self-employed, and contractors can all apply. Self-employed applicants typically need at least 12 months of trading history with supporting accounts.
Income assessment approach: they look at your overall financial picture, including existing commitments, monthly outgoings, and how the new loan fits your budget. This holistic approach can work in your favour if you have complex but stable income.
Step One Finance is known for being more flexible with credit history than high street banks. They may consider applicants with older, satisfied credit issues, some adverse credit history depending on severity and age, or non-standard credit profiles.
However, flexible criteria doesn't mean automatic acceptance. Their affordability assessments are reportedly thorough, and applications can be declined even with good credit if the numbers don't work.
Eligibility
Understanding who you're borrowing from helps you assess their reliability and service standards.
Step One Finance was established in 2010 by a small team in Mayfair, London. They started lending their initial second charge mortgage products in 2012 and had completed their first £1 million in loans by June 2013.
Growth came steadily: by the end of 2014, they'd reached £10 million in completed loans and moved to larger offices in Woking, Surrey. In 2016, they received full Financial Conduct Authority permissions and completed an equity funding round that brought PIMCO on board as a minority investor and funding partner. The company has since reached the milestone of £200 million in completed loans.
Today, the team numbers over 30 professionals, and Step One Finance has expanded its product range to include personal loans and bridging finance.
Step One Finance Limited is authorised and regulated by the Financial Conduct Authority. They're also members of the Finance & Leasing Association (FLA), which sets standards for lending practices in the UK.
This regulation means Step One Finance must follow Consumer Credit rules designed to protect borrowers, including requirements around:
You can verify their authorisation on the Financial Services Register.
Step One Finance says it's guided by four principles: responsibility (are products affordable and helpful?), transparency (do products deliver what they promise?), fairness (treating people as they'd wish to be treated), and simplicity (can products be easily explained?).
These stated values are worth remembering if you ever need to challenge a decision or raise a complaint - you can hold them to their own standards.
Knowing what to expect can help you prepare and potentially speed up your application.
Based on our experience helping customers through secured loan applications, these documents slow people down most often:
Self-employed applicants: have your SA302 forms and tax year overviews ready. Accountant-prepared accounts should include a projected current year if you're partway through your financial year.
Complex income: if you have multiple income sources, prepare a summary document showing how they fit together and how reliable each one is.
Property: know your approximate property value and outstanding mortgage balance. If you've had recent improvements that might affect value, have evidence ready.
How it works
Initial enquiry and eligibility check
Step One Finance works through broker channels, so your first contact will typically be through a broker or comparison service. A soft credit check gives a preliminary indication of whether their products suit your circumstances, without affecting your credit score.
Full application
You'll need to provide proof of identity, proof of address, income evidence, bank statements, and details of your existing mortgage and other debts, along with property information.
Underwriting and valuation
Step One Finance's underwriting team checks affordability, credit history, and property valuation. This stage typically takes 1-2 weeks depending on complexity.
Decision and offer
If approved, you'll receive a formal loan offer detailing the amount, rate, term, and all associated costs, with time to review it with your broker before committing.
Completion
Once you accept the offer and legal formalities are complete, funds are typically released within a few days. The full process usually takes 3-4 weeks in straightforward cases, longer for complex applications.
Ready to start?
A soft search check takes a couple of minutes and won't affect your credit score.
Every lender has trade-offs. Here's an honest assessment of Step One Finance's strengths and weaknesses.
Industry-leading 95% LTV: this is Step One Finance's standout feature. Most secured loan lenders cap at 85-90% LTV, meaning you need more equity available. Step One Finance's 95% limit opens doors for homeowners who would otherwise struggle to borrow. This was increased from 85% in July 2024, showing they're actively expanding access.
No upfront fees: you don't pay anything until the loan completes. This removes the financial risk of paying application fees on a loan that might not be approved.
5-year fixed rate option: rate certainty for the first five years helps with budgeting, particularly useful given recent interest rate volatility.
Buy-to-let acceptance: landlords can access secured finance up to 85% LTV on investment properties, with maximum loans up to £150,000.
No early repayment charges: the flexibility to overpay or settle early without penalty is valuable if your circumstances might change.
Specialist approach: Step One Finance's human underwriting and broker relationships mean complex cases get individual assessment rather than an automated decline.
Limited geographic coverage: no lending in Northern Ireland, and focused only on England, Wales, and Scotland. This excludes a segment of UK homeowners.
Maximum loan size: at £250,000 for residential properties, with larger amounts considered case-by-case, Step One Finance is smaller than competitors offering up to £1 million. If you need a very large loan, other lenders may suit better.
Strict affordability assessments: customer reviews mention applications declined despite meeting credit requirements, with affordability cited as the reason. Step One Finance's careful approach protects both parties but can frustrate borrowers.
Processing time: at 3-4 weeks typically, Step One Finance isn't the fastest option if you need funds urgently.
Mixed customer reviews: review sites show polarised experiences. Broker partners tend to rate Step One Finance highly, while some customers report frustration with decisions or processes.
Broker access only: you can't apply directly to Step One Finance. While brokers add expertise, some borrowers prefer applying directly.
Real customer experiences provide valuable insight beyond marketing claims.
Step One Finance has limited reviews on mainstream consumer sites like Trustpilot, making it harder to assess broad customer satisfaction. The reviews that exist are notably polarised.
Positive feedback themes: broker partners consistently praise Step One Finance's underwriting team. Reviews highlight staff members by name, praising their knowledge, availability, and proactive communication. Satisfied direct customers mention 'open, transparent and fair' dealings and appreciate speaking to real people rather than automated systems.
Negative feedback themes: the most concerning negative reviews describe difficult experiences when customers faced financial difficulties, including complaints about the complaints process itself. This reflects the serious nature of secured lending - if you can't keep up payments, lenders have significant powers. Other negative reviews mention applications being declined after lengthy processes, sometimes after earlier positive indications, along with criticisms of slow decision-making and piecemeal information requests.
Our assessment: the small number of consumer reviews makes it difficult to draw firm conclusions. Step One Finance appears to have strong broker relationships and provides good service through the application process. However, borrowers should understand that any secured lender will take firm action if payments aren't maintained - that's the nature of secured lending, not unique to Step One Finance.
On review platforms, Step One Finance achieves mixed ratings: some highly positive experiences alongside serious complaints. This pattern is common among specialist lenders serving customers with complex circumstances.
Understanding alternatives helps you assess whether Step One Finance is genuinely the right option for you. Step One Finance is a specialist consumer lender offering a focused range of loan products, which sets it apart from some mainstream providers offering a broader but less specialised range.
When to choose Step One Finance: if you need to borrow above 90% LTV, Step One Finance is one of very few options. Their 95% maximum is a genuine differentiator.
When to choose United Trust Bank: for larger loans, a longer track record, or if you're comfortable with 90% LTV or lower.
When to choose Step One Finance: if you're comparing similar LTV requirements and prefer Step One Finance's approach or get a better quote.
When to choose Pepper Money: if you need a larger loan, have more significant adverse credit history, or want a lender with an established track record on complex cases.
When to choose Step One Finance: if 95% LTV meets your needs and you're comparing rates.
When to choose Tandem: if you need the absolute maximum LTV (100%) or have an energy-efficient home that could qualify for a rate discount.
Step One Finance occupies a specific niche: homeowners who need high LTV borrowing but don't quite need 100%. Their 95% maximum serves borrowers with limited equity who don't want the higher costs typically associated with 100% LTV products.
They're not trying to compete on the largest loan amounts or the most competitive rates at lower LTV ratios. If you have substantial equity available, mainstream options may suit you better. But if equity is tight and you need flexibility, Step One Finance is worth considering.
Comparing your options
Based on Step One Finance's features, strengths, and limitations, here's guidance on who they best serve.
Homeowners with limited equity: if you need to borrow but have less than 15% equity available after your existing mortgage, Step One Finance's 95% LTV is one of very few options. Most lenders cap at 85-90%, leaving higher-LTV borrowers with limited choices.
Debt consolidation applicants: Step One Finance is often used for consolidating existing debts. The monthly payment reduction can be significant even if total interest over the longer term is higher. If cash flow is your primary concern, this trade-off may work for you.
Self-employed applicants with complex income: Step One Finance's individual underwriting approach can work better for self-employed applicants whose income doesn't fit standard boxes.
Those who can't remortgage: if your existing mortgage has a competitive rate with high early repayment charges, or your circumstances have changed since you got your mortgage, a second charge loan lets you access funds without disturbing your main mortgage.
Buy-to-let landlords needing equity release: with 85% LTV available for buy-to-let properties and loans up to £150,000, Step One Finance provides options for property investors.
Borrowers needing very large loans: if you need more than £250,000, other lenders such as United Trust Bank or Pepper Money are better suited.
Those with significant recent adverse credit: while Step One Finance considers adverse credit, their affordability assessments are thorough. Severely impacted credit histories may find specialist adverse credit lenders more appropriate.
Urgent borrowing needs: at 3-4 weeks processing time, Step One Finance isn't the fastest option. If you need funds within days, bridging finance or faster lenders may serve better.
Borrowers who prefer direct applications: Step One Finance works through brokers only.
Northern Ireland homeowners: Step One Finance doesn't lend on Northern Ireland properties.
Choose Step One Finance if:
Consider alternatives if:
We compare a wide range of secured loan providers, including Step One Finance
Before taking out any secured loan, including from Step One Finance, it's important to understand what you're committing to.
This is the most important consideration. A secured loan uses your home as collateral. If you don't keep up repayments, the lender can ultimately repossess your property to recover their money.
Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
Step One Finance's legal charge sits behind your main mortgage, so your first mortgage lender would be paid first from any sale. But the risk to your home is real. Only borrow what you can genuinely afford, with realistic consideration of how your circumstances might change. If you're ever worried about keeping up with payments, free and impartial guidance is available from MoneyHelper (moneyhelper.org.uk or 0800 138 7777).
Questions to ask yourself:
Secured loans can seem affordable because of low monthly payments, but longer terms mean more interest overall. A longer term reduces your monthly payment but increases the total interest you'll pay over the life of the loan. If you're consolidating existing debt, ask your advisor for a full cost comparison to check whether the secured loan saves money overall, not just monthly.
A secured loan affects your options in several ways:
Remortgaging: future mortgage lenders will consider your second charge when assessing affordability, potentially limiting how much you can borrow or which deals you can access.
Moving home: you'll need to settle or transfer the secured loan when selling your property. This affects your sale proceeds and potentially your ability to buy your next home.
Credit for other purposes: monthly secured loan payments reduce your available income for other borrowing.
Despite the risks, secured loans serve legitimate purposes:
We're a broker, not a lender. We connect you with specialist lenders, including Step One Finance, to help you find the right secured loan for your circumstances.
Why apply through Money Saving Advisors:
What happens when you contact us: we assess your needs, check eligibility across our lender panel, compare options that suit your circumstances, and help you through the application with your chosen lender. We'll give you an honest assessment of whether Step One Finance, or any secured loan, is the right choice for you.
Three ways to proceed
Common questions
Yes. Step One Finance Limited is authorised and regulated by the Financial Conduct Authority. You can verify this on the Financial Conduct Authority's Financial Services Register. They're also members of the Finance & Leasing Association. The company has been operating since 2010 and has completed over £200 million in lending.
Step One Finance doesn't publish a minimum credit score requirement. They assess each application individually, considering your full financial circumstances rather than relying on score cutoffs. This approach can benefit applicants with complex credit histories, but approval isn't guaranteed regardless of score.
Typical processing time is 3-4 weeks from application to funds release. This can extend for complex cases or if additional documentation is required. Having all your paperwork ready at application stage helps minimise delays.
Yes. Initial eligibility checks use a soft search that won't affect your credit score. If you proceed to a full application, a hard credit check will be performed, which does appear on your credit file and can affect your score for up to six months.
Step One Finance considers applications with adverse credit history, but approval depends on the severity, age, and your current financial circumstances. They're known for more flexibility than high street banks, but they're not a guaranteed option for every credit situation.
For residential properties, standard loans go up to £250,000, with larger amounts considered case-by-case. For buy-to-let properties, the maximum is £150,000. Your actual maximum depends on your equity, income, and affordability.
Yes. Step One Finance doesn't charge early repayment fees on their standard products, so you can overpay or settle the loan early without penalty. There's typically a minimum overpayment amount, so check your specific loan terms to confirm.
Yes. Landlords can access secured loans up to 85% LTV on buy-to-let properties, with maximum loans up to £150,000. The application process and affordability assessment differ from residential loans.
Step One Finance works through broker channels rather than accepting direct applications. You can access their products through mortgage brokers or comparison services. We can check your eligibility against Step One Finance and other lenders on our panel.
Contact Step One Finance immediately if you're struggling. Under Financial Conduct Authority rules, they must treat customers in financial difficulty fairly and discuss options before taking enforcement action. Free and impartial guidance is also available from MoneyHelper (moneyhelper.org.uk or 0800 138 7777). However, secured lending ultimately carries repossession risk if payment problems aren't resolved.
Step One Finance's rates are positioned within the high-LTV specialist lending market. For borrowers needing 85-95% LTV, their pricing is broadly in line with similar specialist lenders. If you have more equity available and could borrow at a lower LTV, mainstream lenders may offer better rates, so it's worth comparing before you commit.
Yes. Step One Finance accepts self-employed applicants with at least 12 months of trading history. You'll need to provide accounts and/or tax returns to evidence your income. Their individual underwriting approach can work well for self-employed applicants with variable income.
Typical requirements include proof of identity, proof of address, three months' bank statements, income evidence (payslips or accounts/tax returns), details of existing debts, and property information. Self-employed applicants should prepare SA302 forms and tax year overviews.
Depending on the loan amount and property type, automated valuations may be accepted for straightforward cases. Larger loans or complex properties typically require a physical valuation, which may incur a fee.
A Step One Finance second charge loan keeps your existing mortgage intact while borrowing additional funds against your equity. Remortgaging replaces your entire mortgage. Second charge loans tend to work better if your current mortgage has a competitive rate, has early repayment charges, or if your circumstances have changed and you might not qualify for a new mortgage on favourable terms.
What our clients say
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