Compare Secured Loans

The typical timeline is 2-4 weeks from application to funding, but this can vary based on several factors: Fast-track applications (with automated valuations): 7-10 days Standard applications with physical valuations: 2-3 weeks Complex cases (self-employed/multiple properties): 3-4 weeks Cases requiring additional documentation: 4-6 weeks If you have all your documentation ready upfront, including proof of income, bank statements (usually 3 months), and proof of identity, you can speed up the process. Some lenders now offer automated valuations for properties under £500,000, which can also save up to a week in processing time.

Secured loans are available for less-than-ideal credit scores, though rates and terms vary significantly: Poor credit (550-600): Rates will typically be much higher than average, some at around 16% to 25% with an LTV capped at around 60% Below average credit (600-650): Rates might range from around 13% to 18%, with a maximum 70% LTV Fair credit (650-700): Rates might range from around 10% to 15%, with a maximum 75% LTV If you have adverse credit, you might find that specialist lenders can help. They may consider: CCJs under £1,000 if satisfied Defaults over 2 years old Historic missed payments Recently self-employed individuals You'll typically need to provide a larger deposit or have more equity to proceed with a lower credit score, and some lenders may require a guarantor.

Secured borrowing offers access to larger amounts than most personal loans and unsecured loans. Secured loans typically range from £10,000 to £2.5 million, with rates varying by amount: Minimum loans: £5,000-£10,000: Limited lenders, higher rates (typically +2% above standard) £10,000-£25,000: Most lenders, standard rates apply £25,000+: Often better rates (-0.5% to -1% below standard) Maximum loans: Regular homeowners: Up to £500,000 (subject to equity) High-net-worth individuals: Up to £2.5 million Buy-to-let properties: Sometimes capped at £1-3 million, depending on the landlord's circumstances The sweet spot for a secured loan with competitive rates is usually between £25,000 and £100,000. Here you'll find the widest choice of lenders and most competitive rates.

Early repayment options vary significantly between lenders. The percentage can refer to the amount overpaid or the outstanding mortgage, so be sure to check with your lender before agreeing to the terms: Early Repayment Charges (ERCs): Within first year: Often 5% Years 2-3: Often 3-4% Years 4-5: Often 2-3% After 5 years: Some lenders charge 1%, others no fee Partial overpayments: Most lenders allow 10% per year without penalty Some flexible lenders permit unlimited overpayments Regular overpayment facilities are usually available Always check the specific terms, as some lenders calculate ERCs on the original loan amount rather than the outstanding balance. This can make a significant difference to how much secured loans cost in total.

Current market comparison (as of 2024): Standard remortgage rates: Some lenders offer rates starting from around 4.5% to around 6% Secured loan rates: Some lenders offer rates starting from around 4-5% to around 13% You may decide to get a secured loan when: Your existing mortgage rate is below 3% (common for those on older, fixed rates) You have high early repayment charges on your mortgage (typically 3-5%) You need funds quickly (remortgaging typically takes 6-8 weeks) Your circumstances have changed (e.g., you've been self-employed for less than 2 years) Be sure to calculate the total cost difference. For example, on £50,000 borrowing you might pay: Remortgage at a theoretical 4.99%: £291 monthly (15 years) Secured loan at theoretical 7.99%: £477 monthly (15 years) Despite this difference, if your existing mortgage has a 5% ERC (£12,500 on a £250,000 mortgage), the secured loan option might be more cost-effective overall.