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Borrow up to £100,000 against your home
MoneySuperMarket is a credit broker not a lender. You must be 18 or over and a UK resident. Your home is at risk if you do not keep up with repayments.
Secured loans - sometimes called homeowner loans, second-charge mortgages or home equity loans - let you borrow money while using a valuable asset as collateral. People usually put up their property as collateral when borrowing with a secured loan.
Unlike unsecured personal loans, lenders can sell your house if you fail to keep up with your repayments. So you should think carefully before taking out a secured loan.
Secured loans are straightforward to apply for and once approved you’ll usually receive the money direct into your bank account. Here’s how the process works:
1) Search for the best deal: There are a range of secured loan options available. MoneySuperMarket helps by asking a few simple questions to show you loans tailored to your financial situation.
2) Apply for the loan: When happy with your loan choice, including the amount you’ll borrow, the interest rate and any fees, you can apply online. Fluent will then contact you to discuss your options and find out more.
3) Get approved and receive your money: Once your application has been approved, the lender will send the requested amount – usually within a few days – to your nominated bank account.
4) Pay back the loan: You’ll then start making fixed monthly payments, including interest, for the agreed length of the loan. Once you have made the final payment, the loan is cleared.
MoneySuperMarket customers take out loans for many different reasons - here's the average loan amount by use case from June 2024 .
Based on the average loan amount from enquiries made on MoneySuperMarket in June 2024
There are advantages and disadvantages to taking out a secured loan in the UK. These include:
You can get the money you need relatively fast
A homeowner loan could cost less in interest repayments than an unsecured loan
You might be able to borrow more than you could with an unsecured loan
As with all loans, you’ll pay back more than you borrow
You risk losing your home if you can’t keep up with repayments
The loan might be more expensive if you have a bad credit history
If you pay off the loan early, you may have to pay an early repayment charge
Our specialist loans partner Fluent Money will help you find the right secured loan to suit your needs.
Use our handy calculator tool to find out how much your monthly repayments could be, and how much you can afford to borrow
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The best secured loan for you will depend on your financial situation, but here’s how to ensure you snag a competitive deal:
Whenever you take out any type of loan, you’ll have to repay the lender. It’s important to make sure you can afford the repayments on a secured loan because if you’re unable to do so you run the risk of your house being repossessed.
Secured loans tend to have a variable interest rate, so you should think about if the loan will still be affordable if rates go up. You should also factor in APR when comparing loans as this can give you an idea of how much the loan will cost you.
Think about how long the loan term will be. Generally, shorter loan terms will have lower interest costs, but the monthly repayments will be higher. If you opt for a longer loan term, then you’ll pay more interest but lower monthly payments.
When you compare a loan with MoneySuperMarket, we highlight the important information for you such as the cost per month and APR. You can even sort loans by the likelihood of you being accepted or the interest rate.
If you have a bad credit score, it can make it harder to be approved for a loan but not impossible. Because a secured loan is tied to your property, creditors are less worried about losing their money if you default.
Taking out a secured loan and making all your repayments could even improve your credit score, making it easier to get credit in the future. But you should keep the risks in mind: if you hit financial difficulties and you can’t pay back what you’ve borrowed, it’s possible you’ll lose your home. If you’re looking to improve your credit score, a credit-builder credit card could be a good to start.
In August, the Bank of England cut the base rate from 5.25% to 5%. And despite subsequently voting to leave the rate unchanged in September, more reductions are expected soon. This rate influences how much it costs banks to borrow money, and in turn, it affects the interest rates offered on loans to consumers. When the base rate is reduced, lenders often lower their Annual Percentage Rates (APRs) on loans, making borrowing more affordable.
However, not all lenders adjust their rates at the same pace. Some may quickly pass on the savings to borrowers, while others may delay or make smaller adjustments. Therefore, it's important to compare secured loan offers to ensure you benefit from the most competitive APRs in the market.
When you apply for a loan, the lender will use your credit rating to decide whether to accept you and what rates to offer you.
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You’re not restricted for what you use a secured loan for. Typically, people use them to cover major expenses, such as substantial house repairs, a home extension, or just an extended holiday. It’s also common to use a secured loan to fund a wedding.
However, it’s generally advised that a secured loan should not be used for starting a business (you’d require a business loan with a business plan to pay it back), or for investing in the stock market.
As the name ‘secured loans’ suggests, you’ll have to put up security to get a secured loan. All secured loans offered on MoneySuperMarket are secured against your home, so think carefully before you commit to borrowing and make sure you’re confident you’ll be able to meet repayments. If you are, then secured loans offer many benefits, including borrowing larger sums and getting lower interest rates than unsecured personal loans.
See personalised deals and find the right homeowner loan for you
We’ll need to know a bit about you. Register yourself as a homeowner to see secured loans in the results.
We’ll show you loans you’re eligible for – if you choose a secured loan you’ll need to register your interest with our partner Fluent.
Fluent will contact you to discuss your secured loan options. Once you’ve decided on a loan you can make your full application
Secured loans can be easier for people with lower credit scores to get. Certain loan providers will be more inclined to lend money to someone with bad credit if they’re putting up a security.
That depends on the provider, but while lenders might be prepared to offer secured loans to a wider range of customers, it is definitely possible to have a credit score that’s so low you won’t be considered for this kind of loan. If you’re at that stage, you should seriously reconsider borrowing any more money.
You get a secured loan in the same way as other loans: by making an application to a loan provider. This will require you to provide some details about yourself and your finances. If you’re approved, you should receive the money in a few days
A lender is the financial institution that loans you the money and is the entity that your loan agreement is with.
On the other hand a 'broker' helps you find the lender, but you aren't borrowing money directly from them.
When you search for unsecured personal loans through MoneySuperMarket, we're the 'broker' in this scenario. For secured borrowing, Fluent is the broker.
If you take out a secured loan and manage to meet all of your monthly repayments in full and on time, you might see your credit score improve over the course of several months.
A secured loan isn’t necessarily the best way to improve your credit score however. Consider a credit-builder credit card if that’s your goal.
You may be able to pay off a secured loan early, but this will depend on your loan provider. Some lenders may charge an early repayment fee.
An unsecured loan is certainly a less risky proposition than a secured loan as there’s no collateral on a standard personal loan. However, if you need a substantial sum of money and you’re certain you will be able to make your repayments, a secured loan might be more suitable.
Of course, you should consider the APR you are offered by your lenders as well: a secured loan with a lower APR might be a better bet than an unsecured loan with a high APR.
It might be possible to get a secured loan against the value of your vehicle with some providers – but currently, MoneySuperMarket only compares secured loans for homeowners. This means your collateral has to be a house or a flat.
There are plenty of providers that will allow you to borrow money against your pension fund – this is known as a pension loan. At the moment, MoneySuperMarket doesn’t compare pension loans, but you can find out more about your options by talking to a financial advisor.
You might be eligible for a homeowner loan if you are aged 18, a UK resident and own property. The final decision will come down to the loan provider, who will also undertake financial checks for affordability and your credit rating.
If you’re looking to borrow but don’t want to take on a homeowner loan, then there might be a few alternatives. These include:
Unsecured loan A personal loan where you don’t have to put up security to be approved. Although you won’t lose your home if you can’t repay it, you might not be able to borrow as much and the APR might be higher
Credit card If you can pay back the money you need quite quickly, applying for and using a credit card could be an option. Look for 0% or low interest deals, so you don’t get caught paying high interest
Remortgage If you have a mortgage on your existing property and have built up equity, rather than take out a second secured loan or ‘charge’ against it, you could consider remortgaging. This means increasing and sometimes extending your existing mortgage term to release the funds you need.
A secured loan is taken out against a valuable asset, e.g. your home, while an unsecured loan isn’t. Both loans will take your credit history, financial and personal circumstances into account, however with an unsecured loan you won’t need to put down collateral.
The exact cost of your secured loan will depend on the deal you’re offered. One of the costs of a secured loan will be the interest you pay over the loan term. You may also face additional fees such as origination fees, appraisal fees (to assess the value of your home), legal and admin fees.
A secured loan can be a good idea if you're certain you can repay the debt as agreed and have bad credit, as it may be one of your few borrowing options. Secured loans typically have lower interest rates and are easier to qualify for due to the reduced risk for lenders. However, be aware that you risk losing your collateral if you fail to repay the loan.
