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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.
Secured and unsecured or personal loans work the same, except lenders can sell your house if you fail to keep up with your secured loan repayments. An unsecured loan, on the other hand, is not backed by collateral and relies on the borrower's creditworthiness.
Secured loans are straightforward to apply for and, once approved, you’ll usually receive the money directly into your bank account:
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.
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. Our specialist partner, Fluent Money, will then contact you to discuss your options and find out more.
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.
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.
Homeowner loans can be used for a several purposes, including:
Use our handy personal loan calculator tool to find out how much your monthly repayments could be, and how much you can afford to borrow
Find out what monthly repayments would be, how much you'll pay overall and how much you could borrow.
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Total amount
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Based on the information you supplied, you would be borrowing XXX and repaying the loan in XXX monthly instalments of . The total sum to repay, subject to XXX% APR over the full loan term would be XXX. This assumes there are no extra fees and that your payments are made on time and in full.
Total amount
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Based on the information you supplied, you could borrow XXX at a monthly repayment rate of to be paid over XXX monthly instalments. Over the full loan term at XXX% APR, the total amount repayable would be XXX. This assumes there are no extra fees and that your payments are made on time and in full.
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If you need a larger amount, consider a secured loan, which will allow you to borrow more but uses your home as collateral. Be aware that lenders can sell your house if you fail to keep up with repayments.
The amount you can borrow will depend on your personal circumstances such as income and credit score.
Here are the average borrowing types per category:
Loan reason | Average loan value |
|---|---|
Home improvement | £11926.30^ |
Debt consolidation | £12390.83^ |
Buying a car | £12507.71^ |
Wedding | £9714.28^ |
Holiday | £4736.77^ |
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.
With a variable rate loan, the interest you pay follows the Bank of England Base Rate, meaning your monthly repayments can go up and down.
Fixed rates mean you pay a fixed interest rate for a period of time, before moving onto a 'Standard Variable Rate' (SVR), which will follow the Bank of England Base Rate and the payments can go up or down.
There is typically a fixed rate of interest for an introductory period and after this ends, you’ll be switched onto the lender’s standard variable rate.
You might be eligible for a secured loan if you are:
A property owner
UK resident
Age 18 or over
The final decision will come down to the loan provider, who will also undertake financial checks for affordability and your credit rating.
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.
Secured loans typically take longer to get approved than unsecured loans, often between 3 and 6 weeks. This longer timeframe is due to the need for property valuations, verification of ownership, and the 7-day "reflection" period.
Factors that will affect the time it takes to get approved include:
The lender you choose
Type of asset securing the loan
Your financial situation and credit history
How quickly you provide paperwork and how you apply for the loan (online is typically faster than mail)
Secured loans can have repayment terms ranging up to 30 years or even longer, sometimes up to 40 years. These types of loans offer more flexibility in repayment terms, allowing you to choose a period that suits your personal circumtances.
The specific term will depend on the lender and the type of asset used as security.
Longer repayment terms lead to lower monthly payments but also a higher total cost due to more interest being charged over the extended period.
The base rate stands at 4% after the Bank of England voted for a 0.25% reduction on 7 August, 2025, the third cut of the year.
The base 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 deals available.
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 can 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.
A secured loan can be a good idea if you're certain you can repay the debt as agreed. Secured loans typically have lower interest rates and are easier to qualify for due to the reduced risk for lenders.
If you have bad credit it may also be one of your few borrowing options.
However, be aware that you risk losing your home or another high value asset if you fail to repay the loan, and like all borrowing, you are likely to pay back more than you borrow.
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
If you're not quite sure if a secured loan is the right choice for you, here are some other options:
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.
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.
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.
Guarantor loans are another option if you have poor or limited credit. They work like a regular loan, except that you need a guarantor when you apply. This is someone (normally a family member) who promises to make your repayments if you miss any.
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.
Kara Gammell Personal Finance & Insurance Expert
MoneySuperMarket has won the Feefo Platinum Trusted Service Award, an independent seal of excellence, which recognises businesses that consistently deliver a world-class customer experience.
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.
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.
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.
Curious about who’s behind the loans? Take a look at each lender’s page below to learn more:
Reviewed on 11 Dec 2025 by
Selected providers. SuperSaveClub restrictions and T&Cs apply. Click here for details.
YouGov Survey 1st July 2024 to 30th June 2025. Net Recommend score derived from “Which of the following online service websites would you recommend to a friend or colleague, or tell them to avoid?” Base: Current Customers of (MoneySuperMarket n=18,382, Compare the Market n=16,802, Go.Compare n=10,162, Confused.com n=8,229, Uswitch n=528).
Selected providers. SuperSaveClub restrictions and T&Cs apply. Click here for details.
Based on the average loan amount from enquirys made on MoneySuperMarket in November 2025 where the purpose of the loan was Home Improvement.
Based on the average loan amount from enquirys made on MoneySuperMarket in November 2025 where the purpose of the loan was Debt.
Based on the average loan amount from enquirys made on MoneySuperMarket in November 2025 where the purpose of the loan was Car.
Based on the average loan amount from enquirys made on MoneySuperMarket in November 2025 where the purpose of the loan was Wedding.
Based on the average loan amount from enquirys made on MoneySuperMarket in November 2025 where the purpose of the loan was Holiday.
Accurate as of 11 December 2025.
