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Compare secured debt consolidation loans

You could consolidate your debt into a secured loan, also known as a second charge mortgage, and make just one repayment each month.

  • Consolidate debt payments to simplify your finances
  • View terms, rates and repayments
  • Our service is simple, reliable, and free of charge

Compare secured debt consolidation loans from leading providers

Looking through a range of options gives you more chance of securing a great deal. You'll only find results from genuine companies. Our data experts check each company before we add them to our comparisons.

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shawbrook-bank-debt-consolidation-loan
united-trust-bank-debt-consolidation-loan
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How to compare secured debt consolidation loans

1

Work out how much you need

Work out the amount of debt you have and the rates you're being charged. Then calculate how much you could afford to pay each month and how long you would need to repay the amount you borrow.

2

Compare debt consolidation loans

Look at different debt consolidation loan deals. Terms and repayments can vary between providers so check any conditions attached to the loan then pick a deal that offers the lowest interest rate.

3

Apply for the loan

Once you've decided on the provider and deal you want, simply apply. You'll have to provide you name and contact details, as well as some details about your finances.

Secured debt consolidation loan deals

Think carefully before securing other debts against your home. You home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.

186 results found, sorted by lowest total amount payable. How we order our comparisons.
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Overall representative example

Based on borrowing£18,000 over 120 monthsThe overall cost of comparison9.1% APRC representative
Borrowing rate6.5% per annum for the first 60 months, followed by 60 months at the lender’s standard variable borrowing rate of 4.95% above Bank of England Base Rate. There would be 60 monthly instalments of £227.38 followed by 60 instalments of £221.71Broker fee£1,530
Lender fee£495Total amount payable£26,945.40 comprised of a loan amount of £18,000 and interest of £6,920.40

What is a secured debt consolidation loan?

A secured debt consolidation loan is similar to a mortgage in that it is a loan secured against your property. But the money you borrow is used to pay off accumulated debt.

How do secured debt consolidation loans work?

As mentioned earlier, these loans are secured against your property, but the money you borrow is used to pay off other debts you may have accumulated. This could be credit card debt, a loan or an overdraft.

This way you can pay off all your other debts and then pay off the debt consolidation loan with a single fixed monthly payment.

How to find the best secured debt consolidation loan

A low interest rate will help you save money when looking for a secured loan for debt consolidation, but you should also consider:

  • How much you need to borrow

  • How long you need to repay the loan

  • Which asset you want to borrow against

Read more about whether you should you consolidate your debts?

Work out what you need

To calculate this:

Work out the total amount you owe 

Add up all your debt from credit cards, overdrafts, loans etc.

Work out much you repay every month 

Add up each monthly repayment to get the total amount you spend on debt repayments.

Check the term of each debt 

Find out how long you have left to pay them off. You can do this by checking your statements or by contacting the lenders.

This can help you work out:

  • How much you need to borrow to pay off your debts.

  • How long it will currently take to clear your debts so you choose a suitable loan term

  • How much you repay each month, so you can make sure you can afford any new loan you choose

  • How much interest you are paying so you can find a cheaper rate

This comparison shows the minimum and maximum loan amounts available.

Deciding what to borrow against

Most lenders will only lend against your property but some may accept valuables like jewellery.

Check the loan to value (LTV) matches what you need. The LTV is how much you can borrow in relation to the value of your asset.

For example a £125,000 loan against your house that is worth £250,000 would have a 50% LTV.

This comparison shows the maximum LTV that companies are willing to lend against.

Should I independent advice about debt consolidation loans?

Securing a loan against your home is not a decision to take lightly. So if you need help, getting impartial advice from an FCA approved independent financial adviser can be useful.

Here is how you can find an independent financial adviser.

Pros and cons of debt consolidation

  • You could receive a lower rate.

  • You’ll have just one monthly payment.

  • You could get out of debt faster.

  • You could build your credit.

  • You may not qualify for a low rate.

  • Missed payments could make things worse.

  • It doesn't address root issues with debt.

  • Often, you end up paying more in interest overall

Compare secured debt consolidation loans FAQs

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Last updated: 30 March, 2022