A secured loan is secured against your property or an asset. That means that if you don't keep up repayments on your debt, the bank could sell your house, or the underlying asset, to get its money back.

If you're a homeowner with bad credit you could still get a secured loan. These are sometimes known as second charge mortgages or bad credit homeowner loans.

You should think carefully before securing debts against your home. But if you need money and are happy to consider secured loans, bad credit won't stop you from being accepted.

Can I get a secured loan with bad credit?

If you're a homeowner and have bad credit, some lenders might offer you a secured loan. You'll find some secured loans for poor credit in our comparison table at the top of this page.

If you're looking at secured loans for bad credit you'll still need to be credit checked. But if you use a broker they can tell you if you're likely to be accepted before you apply.

Even if you owe mortgage or other payments, or have County Court Judgements (CCJs) against you, you might still be able to get a secured loan for bad credit. If you're looking at secured loans, bad credit doesn't mean you won't be accepted like it can with other loans.

Getting the right secured loan for bad credit

If you're looking at bad credit secured loans, there's a lot to consider.

You'll need to find a loan that lets you borrow the amount of money you need, gives you enough time to pay it back, and has the lowest interest rate you can find. Of course, if you want a secured loan, poor credit will also be a factor in whether you get accepted.

To get the best secured loan for bad credit in the UK it's a good idea to speak with a qualified broker. Most banks these days don't offer secured loans to borrowers. They work with brokers instead.

A good broker will talk to you about your money situation - including your credit problems, and help you find a loan that meets your needs. If you have poor credit, secured loans are likely to be your best option but a broker with help you find the most suitable one.

Before you apply for a secured loan with poor credit

Before you start applying for at secured loans for bad credit there are a few steps you should follow.

  1. Decide how much you need to borrow: Think about how much you need so you and your broker can find suitable secured loans.

  2. Work out the value of your home: You'll need to have your property valued, and how much is outstanding on your mortgage if you have one.

  3. Choose your loan term: Your loan term is how many months you take to pay back the money. You'll need to work out how much you can afford each month and base your loan term around this.

  4. Check your credit record: It's worth checking your credit record is accurate and up to date before you look at bad credit secured loans.

  5. Talk to a broker: This is the final step to take before you apply for homeowner loans for poor credit. It's important to remember that with secured loans for bad credit, an instant decision is unlikely.

Secured loans for bad credit FAQs


Do I have to pass a credit check to get a secured loan?


Yes, but some brokers offer a soft search so you can check if you could get the loan before you apply without it appearing on your credit record.


How long does it take to get a secured loan?


It is normally around two weeks from your application being submitted to the money being transferred to your account.


How much can I borrow with a secured loan?


This will depend on your property value and income, but secured loans can be for anywhere between 1,000 and 2.5 million.


Do I have to be a homeowner to a get a secured loan?


Not always, the vast majority of secured loans are only available to homeowners, but some will let you secure the loan on other assets e.g. a car.


Who will value my property?


The lender will arrange for a valuation from a Chartered Surveyor as part of your application, but you will normally have to pay a fee for this.

About our loans comparison


Who do we include in this comparison?


We include secured loans available directly from lenders and through brokers on our panel. They are all from lenders regulated by the Financial Conduct Authority. Here is more information about how our website works.


How do we make money from our comparison?


We have commercial agreements with some of the companies in this comparison and get paid commission if we help you take out one of their products or services. Find out more here.
You do not pay any extra and the deal you get is not affected.