Compare our best secured loan rates

If you're a homeowner you could find a loan that is secured against your home. Compare secured loans, and find cheaper rates to lower your repayments.

  • Rates from 3.85% APR
  • Repay over as long as 30 years
  • Borrow up to £500,000

Compare secured loans from leading providers

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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How to get a secured loan

Compare loans

Using our secured loan comparison you can find our best loan deals available. By comparing loans you know what's available in the market and ensure that you get the best deal for your needs.

Choose the loan deal you want

Pick a deal that offers you the lowest interest rate and a term long enough to afford the monthly payments, while also ensuring you don't pay too much in interest overall.

Fill out an application

Once you've found a deal, you can fill out an application form, providing name and contact details, as well as financial details. The lender will then assess your affordability for the secured loan.

Compare secured loans

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

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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
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What is a secured loan?

Secured loans are loans which require you to put up a security in the form of an asset, such as your home, or a property you own. This is why secured loans are often known as homeowner loans and even second charge mortgages.

In the event that you’re unable to repay your secured loan, the bank or lender can repossess your home to recoup the money you borrowed by selling it. This is why you should always be careful before securing debts against your home. Make sure you have a repayment plan in place so you don’t miss any payments.

A secured loan allows you to borrow more for longer than you would be able to with a personal loan. Depending on the value of your home, lenders can lend between £1,000 to £2.5 million.

How much do secured loans cost?

Much like most loans, the main costs of a secured homeowner loan are:

Interest

The interest rate you are offered will determine your monthly payments and the amount of interest you pay overall in addition to paying back the original amount you borrow.

Speaking to a broker can help you find the best secure loan rates for your specific financial circumstances.

Fees

As with any loan, there are fees that come attached with your loan. These can take the form of arrangement fees, broker fees, or early repayment fees.

Even though brokers charge for their services, they can help in finding you a deal that keeps these costs to a minimum.

Using our secured loan calculator, you can work out how much your repayments will be. You can find out more about how homeowner loans work here.

If you find yourself struggling to meet repayments, seek help as soon as possible. There are free, independent debt charities you can speak to about your situation¹.

Pros and cons of secured loans vs personal loans

  • You can borrow more: Secured loans let you borrow much larger amounts than personal loans
  • More people qualify: As your property acts as security, secured loans can be easier to qualify for than unsecured loans
  • Longer to pay it back: You can take out a secured loan over a far longer period than a personal loan - lowering monthly repayments
  • Your home or other asset is at risk: Failing to meet payments could see your lender take possession of your home
  • More to pay back overall: If you take out a loan for longer, you can end up paying back more overall as the interest has longer to build

Alternatives to secured loans

If you’d rather take a different route with your borrowing, you could also consider:

Re-mortgage

If you have an existing mortgage you could simply take out a new product that covers your existing loan plus the amount extra you want to borrow on a secured loan.

The main danger here is that by increasing the percentage of your home you're borrowing against, you could see your mortgage costs rise on the entire amount you have borrowed.

You will also pay interest on that larger amount for the entire term of your loan - which could be significantly longer than the term of a secured loan.

You might also have to pay an early repayment charge if you're within the fixed or discounted period of your mortgage.

Equity release

Older homeowners might like to think about choosing equity release, rather than a secured loan.

There are two main forms of equity release - lifetime mortgages and home reversion schemes. In both cases, the howeowner pays nothing until their home is sold.

With a lifetime mortgage, the loan against your home builds up interest, but there is no money paid until you die or your home is sold when you move into care. Lenders frequently offer a guarantee that the interest will be capped so your loan will never exceed the value of the home.

With home reversion plans you sell part, or even all, of your home - but retain the right to live in it until it's sold.

Second charge mortgage

Second charge mortgages are a type of secured loan.

Instead of remortgaging or taking out a personal loan, a second charge mortgage lets you use the equity you have in your home as security. The equity in your home is the percentage of the home owned outright by you.

When you get a second charge mortgage you’ll have two mortgages: one on your home itself, and one on the equity in your home. Often it can be an alternative to remortgaging if you need to raise some cash.

It’s important that you fully understand the risks. As it’s a loan secured by property, you risk losing your home if you can’t make the repayments.

Can you get a secured loan with bad credit?

If you’re a homeowner with bad credit, you can still get a secured loan.

Speaking to a mortgage broker can help you find the right secured loan, without having to go through several credit checks that can hurt your credit score.

You can compare secured loans for bad credit here.


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How to get the best secured loan?

While there isn’t a single best homeowner loan you can opt for, you can improve your chances of getting the best deal if you compare secured loans before you speak to a broker.

The table above gives an idea of secured loan rates being offered by various lenders.

To find the best secured loans deal for you, you need to understand that secured loan rates are based on your specific financial circumstances.

A useful way to get the right secured loan for you is to speak to a qualified broker. That’s because most lenders who offer secured loans, UK wide, only work with brokers.

What to do before you speak to a broker

A broker can help you find the ideal homeowner loan for your needs by taking into account your individual financial circumstances - then checking what's available on the market.

A broker will then find you a secured loan by calculating your affordability based on the answers you provide.

That means before you consult a broker, it makes sense to think about the following things:

  • How much you want to borrow

  • How long you need to pay it back

  • The value of your property

  • How much equity you have in your home

  • Other debts that you owe

Salman Haqqiquotation mark
Secured loans can be a great option if you need to borrow money over an extended period - just make sure you understand the risks before signing up.
Salman Haqqi, Loans expert

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Why compare secured loan deals with money.co.uk?

Comparing secured loans could save you money. Our multiple award-winning comparison service makes sure you get the lowest rates possible based on your individual circumstances. Our aim is to provide you with the most up-to-date information, as well as useful tools and calculators so to help you make life's most important decisions and take control of your money.

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We have always aimed to provide the best possible services to bridge the gap between our users and our clients. Over the years, we have been thrilled to be recognised by various prestigious bodies and organisations for those efforts.

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¹ StepChangeNational Debtline and Citizen's Advice are some of the UK's leading debt charities where you can get free expert debt advice to help you get out of debt.

Last updated: 03 February 2022