Homeowner Loans
Secured Loans
from 6.34%
A secured loan lets you borrow £3,000 to £500,000 against the equity in your home. Compare rates from 6 specialist UK lenders with no credit check and no obligation.
Last updated: March 2026
Quick Answer
A secured loan is a type of borrowing available to UK homeowners where the loan is secured against your property as a second charge, sitting behind your existing mortgage. You can borrow from £3,000 to £500,000 with typical interest rates of 6–12% APR, significantly lower than unsecured personal loans or credit cards. Your current mortgage deal remains completely unaffected. Secured loans are ideal for homeowners who need larger amounts for purposes such as home improvements, debt consolidation, or major purchases. Repayment terms range from 5 to 25 years, keeping monthly payments manageable. All UK secured loans are regulated by the Financial Conduct Authority (FCA), and must be arranged through an authorised broker. Unlike unsecured loans, which are typically capped at £25,000, a secured loan uses your home equity to unlock higher borrowing limits at lower rates.
What Is a Secured Loan?
A secured loan (also called a homeowner loan or second charge mortgage) is a loan secured against your property. Unlike an unsecured personal loan, the lender holds a legal charge on your home, which means they can offer lower interest rates and higher borrowing amounts.
The loan sits behind your existing mortgage as a second charge — your current mortgage deal remains completely unaffected. You continue making your normal mortgage payments, plus a separate monthly payment for the secured loan.
Secured loans are regulated by the Financial Conduct Authority (FCA) and must be arranged through an authorised firm. As an FCA-authorised credit broker (FRN 624668), Secured Loan Hub compares deals from our full panel of specialist lenders to find the most competitive option for your circumstances.
Benefits of a Secured Loan
Lower interest rates
Because the loan is secured against your property, lenders can offer significantly lower rates than unsecured personal loans or credit cards — typically 6–12% compared to 15–40%.
Borrow larger amounts
Secured loans let you borrow from £3,000 up to £500,000. Unsecured loans are usually capped at £25,000–£50,000.
Longer repayment terms
Spread repayments over 5 to 25 years, keeping monthly payments affordable. Unsecured loans rarely exceed 7 years.
Keep your existing mortgage
A secured loan sits behind your mortgage as a second charge. Your current mortgage rate and deal remain completely unaffected.
Flexible credit criteria
Specialist lenders on our panel consider applicants with adverse credit, CCJs, defaults, and missed payments.
Multiple purposes
Use a secured loan for home improvements, debt consolidation, a new car, business purposes, school fees, or any other legal purpose.
What Can You Use a Secured Loan For?
Debt Consolidation
Combine credit cards, loans, and overdrafts into one lower monthly payment.
Home Improvements
Fund extensions, renovations, new kitchens, or loft conversions.
Large Purchases
Finance a new car, wedding, holiday, or other significant expense.
Business Purposes
Raise capital for your business without commercial lending rates.
School & University Fees
Spread education costs over a manageable term.
Tax Bills
Pay HMRC liabilities and spread the cost over time.
Am I Eligible for a Secured Loan?
To qualify for a secured loan, you typically need to:
- Own a property — either with a mortgage or owned outright
- Have sufficient equity — most lenders require at least 15–25% equity after the secured loan
- Demonstrate affordability — you need enough income to cover the new payment alongside existing commitments
- Be a UK resident — aged 18 or over
Bad credit? You may still qualify. Our panel includes specialist lenders who consider applicants with CCJs, defaults, missed payments, IVAs, and debt management plans. Rates will be higher but options are available for most situations.Learn more about bad credit secured loans →
Current Secured Loan Rates
Indicative rates from our lender panel. Your actual rate depends on your circumstances.
Selina Finance
Home Equity Loan 5yr Fixed
6.34%
5yr Fixed · up to 50% LTV · APRC 7.0%
Selina Finance
Home Equity Loan 5yr Fixed
6.39%
5yr Fixed · up to 65% LTV · APRC 7.0%
Pepper Money
Second Charge 5yr Fixed
6.99%
5yr Fixed · up to 85% LTV · APRC 7.9%
Spring Finance
Optimal Zero 5yr Fixed
7.61%
5yr Fixed · up to 80% LTV · APRC 8.4%
Spring Finance
Optimal Zero 2yr Fixed
7.90%
2yr Fixed · up to 80% LTV · APRC 8.2%
Spring Finance
Optimal 1 5yr Fixed
8.51%
5yr Fixed · up to 80% LTV · APRC 9.3%
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