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Secured loans

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We compare offers from a wide range of lenders from across the market

We work with over 30 loan providers including most of the big brands to help you borrow the money you need.

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Compare secured loans

Finding a loan can be difficult, particularly when you have a less-than-perfect credit score. If you own valuable assets like a house or car, a secured loan may be an alternative if you can’t get a personal loan. However, it is important to understand the risks when taking out a secured loan: If you fail to keep up with the repayments, the lender could seize your asset.

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How are secured loans different to unsecured loans?

Secured loans use your asset as security, making them a common option for people who need a substantial sum of money but who have a low credit score. 

Basically, showing a lender that you’re prepared to put valuable possessions on the line, you tell them how serious you are about paying them back for the loan. You may even find you are offered a better rate of interest than with an unsecured loan for this very reason. 

While they ultimately both end up with you borrowing money from a lender, there are a few fundamental differences between secured and unsecured loans:

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    Secured loans

    Tied to collateral: You may lose your home if you don’t keep up repayments

    A bigger loan: Secured loans may help you secure a larger sum than personal loans

    Better rates: Lenders sometimes  feel able to offer better APR on secured loans

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    Unsecured loans

    Consequences: Defaulting will hit your credit score, but you won’t lose your home

    Your credit score: Your credit score will help decide the terms and APR you’re offered

    Variable rates: There’s a much wider variety of APR on the unsecured loan market

What to consider when looking at secured loans?

There are various types of secured loan available, most of which are offered by MoneySuperMarket. You can choose from the following:

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Homeowner loans

Also known as home equity loans, these let you borrow money against the current value of your home

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Bridging loans

Short-term, high-interest loans designed to finish the purchase of a new property before you’ve sold your current home

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Debt consolidation loans

This type of loan bundles up all your other debts into one monthly repayment. Some larger loans can be secured

What to consider when looking at secured loans?

Secured loans are a much riskier proposition than personal loans, both for the borrower and the lender, and you should always think carefully before you take one out. Here’s what you should consider:

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    Can you afford it?

    Secured loans tend to be for much larger sums than other loans, which means you pay more interest. Are you sure you can make repayments every month?

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    Your credit score is important

    The terms and interest the lender offers you will be informed by your credit score – and you’ll probably get a better deal with a higher rating

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    There are consequences

    Lenders want a security because they’d otherwise lose a lot of money if you default on your loan. That means your house and car could be repossessed

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    Other factors lenders consider

    Lenders will take other factors into account too, including your income, how much equity you have in your home, and any existing loans you have

How to compare loans with MoneySuperMarket

Find the right loan for you and see which rates you’ll be guaranteed to get.

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You’ll be able to sort loans by the overall cost and the likelihood you’ll be accepted

With a pre-approved loan, the deal you see is the deal you get

When you apply for a loan, it’s not always clear what deal you’ll be offered or whether you’ll be accepted. But when you’re pre-approved for a loan, you know the deal you see is the deal you’ll get – you’ll know where you stand, with information that will help you make the right choice.

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Apply with confidence

When you’re pre-approved, the loan amount, duration and interest rate are all confirmed

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Tailored to you

When you know what you’ll be able to borrow and how much it will cost, you can choose a loan that’s right for you

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You’re in safe hands

This helps protect your credit score as you’re less likely to be rejected when you apply

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

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.

This depends on the provider. Some lenders allow people to pay their loans off early, which can help reduce your total interest bill, but other lenders will charge you if you try.

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.

MoneySuperMarket gives you lots of clever ways to save a lot, by doing very little.

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We commit to providing you with clear and informative answers on all points such as this, so we have gathered the relevant information on this page.