Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. Typical APR 24.9% variable.

Prestige Finance Near Prime Secured Loan
Max LTV
70%
Loan Amount
£10,000 to £100,000
Interest Rate
12.5% p.a
Loan Term
3 years to 25 years
You must be a homeowner to apply as this loan will be secured against your home.
Central Trust Ltd Fixed Rate Secured Loan
Max LTV
60%
Loan Amount
£10,000 to £70,000
Interest Rate
11% p.a
Loan Term
3 years to 25 years
You must be a homeowner to apply as this loan will be secured against your home.
Central Trust Ltd Fixed Rate Secured Loan
Max LTV
70%
Loan Amount
£50,001 to £70,000
Interest Rate
12.99% p.a
Loan Term
3 years to 25 years
You must be a homeowner to apply as this loan will be secured against your home.
Central Trust Ltd Fixed Rate Secured Loan
Max LTV
70%
Loan Amount
£10,000 to £50,000
Interest Rate
12% p.a
Loan Term
3 years to 25 years
You must be a homeowner to apply as this loan will be secured against your home.
Blemain Finance Large Medium Adverse Secured Loan
Max LTV
55%
Loan Amount
£50,001 to £500,000
Interest Rate
13.76% p.a
Loan Term
3 years to 30 years
You must be a homeowner to apply as this loan will be secured against your home.
Blemain Finance Large Heavy Adverse Secured Loan
Max LTV
50%
Loan Amount
£25,001 to £500,000
Interest Rate
14.96% p.a
Loan Term
3 years to 30 years
You must be a homeowner to apply as this loan will be secured against your home.
Spring Finance Heavy Adverse Secured Loan
Max LTV
65%
Loan Amount
£5,000 to £100,000
Interest Rate
15% p.a
Loan Term
5 years to 25 years
You must be a homeowner to apply as this loan will be secured against your home.
Central Trust Ltd Micro Secured Loan
Max LTV
60%
Loan Amount
£3,000 to £9,999
Interest Rate
11.4% p.a
Loan Term
3 years to 25 years
You must be a homeowner to apply as this loan will be secured against your home.
Norton Finance Fast Track Secured Loan
Max LTV
55%
Loan Amount
£10,000 to £30,000
Interest Rate
13.88% p.a
Loan Term
1 year to 20 years
You must be a homeowner to apply as this loan will be secured against your home.
Central Trust Ltd Micro Secured Loan
Max LTV
70%
Loan Amount
£3,000 to £9,999
Interest Rate
12.4% p.a
Loan Term
3 years to 25 years
You must be a homeowner to apply as this loan will be secured against your home.
Moneyway Personal Loan
Max LTV
-
Loan Amount
£1,000 to £15,000
Interest Rate
18.9% APR Representative
Loan Term
1 year to 5 years
Representative Example: The Representative APR is 24.9% APR so if you borrow £5,000 over 4 years at a rate of 22.46% p.a. (fixed) you will repay £158.73 per month & £7,619.04 in total.
Norton Finance Standard Secured Loan
Max LTV
65%
Loan Amount
£10,000 to £30,000
Interest Rate
14.89% p.a
Loan Term
1 year to 20 years
You must be a homeowner to apply as this loan will be secured against your home.
Blemain Finance Heavy Adverse Secured Loan
Max LTV
60%
Loan Amount
£3,000 to £30,000
Interest Rate
14.99% p.a
Loan Term
3 years to 30 years
You must be a homeowner to apply as this loan will be secured against your home.
Norton Finance Fast Track Secured Loan
Max LTV
55%
Loan Amount
£3,000 to £9,999
Interest Rate
14.89% p.a
Loan Term
1 year to 20 years
You must be a homeowner to apply as this loan will be secured against your home.
Norton Finance Standard Secured Loan
Max LTV
65%
Loan Amount
£3,000 to £9,999
Interest Rate
15.89% p.a
Loan Term
1 year to 20 years
You must be a homeowner to apply as this loan will be secured against your home.
Citrus Loans Personal Loan
Max LTV
-
Loan Amount
£500 to £20,000
Interest Rate
22.5% APR Representative
Loan Term
1 year to 3 years
Representative Example:The Representative APR is 22.5% APR so if you borrow £3,000 over 2 years at a rate of 20.5% (fixed) then you will repay £153.38 per month & £3,681.05 in total.
Opal Loans Personal Loan
Max LTV
-
Loan Amount
£2,000 to £10,000
Interest Rate
24.9% APR Representative
Loan Term
2 years to 5 years
Opal Loans offers a loan broking service. Please only apply if you are a home owner, aged 25 to 72, earning £15,000 per annum, and making regular payments to your mortgage.
Representative Example: The Representative APR is 24.9% APR (variable). Borrow £5,000 and pay £198.53 a month for 36 months. The Total Interest Payable is £2,147.08. The Total Amount Payable is £7,147.08.
Equifinance Adverse Secured Loan
Max LTV
70%
Loan Amount
£5,000 to £30,000
Interest Rate
19.2% p.a
Loan Term
5 years to 20 years
You must be a homeowner to apply as this loan will be secured against your home.
Equifinance Adverse Secured Loan
Max LTV
75%
Loan Amount
£5,000 to £15,000
Interest Rate
19.2% p.a
Loan Term
5 years to 20 years
You must be a homeowner to apply as this loan will be secured against your home.
Equifinance Adverse Secured Loan
Max LTV
65%
Loan Amount
£5,000 to £10,000
Interest Rate
21.6% p.a
Loan Term
5 years to 20 years
You must be a homeowner to apply as this loan will be secured against your home.

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Finding the Best Debt Consolidation Loans for Bad Credit

by DanB from money.co.uk

One way to ease the burden of paying back several loans is to consolidate debt. Our guide explains what you need to know to help you find the best debt consolidation loan.

Calculator

If you have problems with bad debt loans might not seem like the obvious way out the red, but can sometimes offer a way to organise your finances and lower the amount you pay.

So even if your circumstances have left you with bad credit consolidation loans could still be an option.

Rather than paying off all of your loans, credit cards and overdrafts with several different payments each month, a debt consolidation loan could allow you to make just one payment per month, making it easier to get your head around exactly what you owe and how much you need to pay to back overall.

Secured or unsecured loans

If you don't own your own home or are not willing to risk losing it if you can't make your payments, an unsecured loan may be your best bet, as your home will not usually be put at risk if things go wrong.

However, many of the loans available to those with bad credit will only be offered to home owners. If you own your own home, you might be offered a secured loan that uses your equity as collateral, but be careful, as these loans often take a long time to pay off and can put your home at risk if you can't pay back what you owe.

Our guide compares the benefits and disadvantages of secured and unsecured loans.

Work out the amount you need to borrow

The amount you borrow will affect which loans are available to you and the interest rates they'll charge. You'll pay more interest if you borrow more than you need, so spend some time working out exactly how much your debts total to avoid taking on too big a loan. Find out if you'll need to pay any exit fees when you pay off your existing loans, and include this in your total amount to borrow.

Choose the term you'll repay the loan over

Choosing how many months you repay the loan over is an important decision.

If you go for a longer loan term than your debts currently run over, this may reduce how much you pay each month, but the total amount you pay back might be higher due to paying more in interest.

You'll need to keep the monthly payments at a manageable level, but you should try to keep the term of the loan as short as you can afford.

Look into transferring several balances to a new credit card

If you have several credit card debts, it might be cheaper to transfer them all to one card with a lower interest rate instead, meaning you would only have to make one monthly payment.

Some credit cards have a 0% interest rate on balance transfers for several months, but may not be willing to offer these if your credit rating is poor.

Beware any fees

As well as arrangement fees charged by the lender for setting up the loan, there might be fees for transactions, any phone calls the lender has to make to chase arrears, and any letters they send out. Don't forget to include these when you work out the total cost of the loan and compare it to what you're currently paying.

You will also need to check that your current loans won't charge you for paying back what you owe them before the term of the loan has ended.

Consider a fixed interest rate

A variable loan can be a more flexible way to repay what you owe, but the interest rate can go up or down, so the amount you need to pay will vary.

If you're using credit consolidation to reorganise your finances, you'll probably want to be able to plan ahead and budget carefully. If so, a fixed rate loan will suit you better, as you'll repay the same amount each month and know exactly when it will be paid off, which could help you organise your finances.

Make sure you're eligible for the loan

When you apply for debt consolidation loans bad credit will make you look like a risky proposition to lenders, which could put them off approving the loan.

This means it's worth looking into companies that lend specifically to borrowers with poor credit, as applying for credit too many times will only make your rating worse.

It's also worth checking if they have any other eligibility criteria, such as:

  • Your age
  • That you have been a UK resident for three years or more
  • That you have a current account
  • That you have a regular income

Compare debt consolidation loans for bad credit

When you look into consolidation loans poor credit will mean that the rates you're offered will be higher than those you see. This is because the interest rate they advertise is the Annual Percentage Rate (APR), and there's no guarantee this will be the rate you pay. Lenders have to offer the APR to 51% or more of their applicants, but they'll charge higher interest if your credit rating is low.

That's why it's important to make sure you find the best rate you can in our debt consolidation bad credit comparison. As well as looking at how much it will ease your monthly payments, work out how much the new loan will cost over its term and compare this to what you'll pay in total with your current arrangements.