Secured Loan With Bad Credit History? - Access Specialist Lenders Today
When you are looking for secured loan with bad credit history, it may still be possible. Every lender assesses secured loan applications differently, and your individual circumstances will determine whether this type of loan is suitable. We work with advisors who are fully qualified and who specialise in getting people a secured loan with bad credit history and can review your situation to provide regulated advice where required
Bad Credit? We Can Help
£1,000-£100,000 secured loans • Same day decision • No upfront fees
CCJs & Defaults Welcome
We look at your asset, not your credit score
Speak to Us Today
Get answers & start your application now
Rebuild Your Credit
Improve your score with every payment
Competitive Rates
Far better than unsecured bad credit loans
✓ Get information on your options
Can You Get a Secured Loan With Bad Credit History?
Having bad credit does not automatically prevent you from getting a this type of loan. Because the loan is secued against your property, lenders focus on the equity available in your home, your income, affordability, and the purpose of the loan. Your credit file will still be assessed, but there are specialist lenders who focus specifically on secured loan with bad credit history applications, including those with CCJs, defaults, late payments and previous missed commitments. These specialist lenders understand that good people sometimes face financial difficulties and assess your current situation rather than just your past credit history
What Types of Credit Issues Can Lenders Consider?
Some lenders can consider:
• Recent or older defaults
• CCJs
• Missed payments
• Debt management plans (DMPs)
• High utilisation of credit
• Previous arrears
• Low credit scores
This varies between lenders, and a qualified adviser will compare the options for you.
How a Secured Loan With Bad Credit History Works
A secured loan with bad credit history works by using your property as security against the borrowed amount. This security reduces the lender's risk, which is why these loan applications are often approved when unsecured loans would be declined.
The process typically involves a valuation of your property to determine how much equity you have available. Lenders will then assess how much they're willing to lend based on a loan-to-value (LTV) ratio. For secured lending, lenders typically lend up to 70-85% of your property value, though this varies by lender and your specific circumstances.
The loan is registered as a second charge against your property, sitting behind your main mortgage. You'll make monthly repayments directly to the secured loan lender, separate from your mortgage payments. Interest rates for a second charge loan are typically higher than mainstream rates but lower than unsecured bad credit loans, reflecting the security provided by your property.
Terms usually range from 3 to 30 years, giving you flexibility in managing your monthly payments. However, it's crucial to understand that because your home secures the loan, failure to keep up with repayments could result in repossession. This is why working with a qualified adviser on your homeowner loan application is so important.
Common Reasons for Taking a Secured Loan With Bad Credit History
People apply for a secured loan with bad credit history for various legitimate reasons:
**Debt Consolidation** - Many use a homeowner loan to consolidate multiple debts into one manageable monthly payment. If you're juggling credit cards, personal loans, and other commitments with high interest rates, consolidating them into a single secured loan can reduce your monthly outgoings and simplify your finances.
**Home Improvements** - Whether it's a new kitchen, bathroom, extension, or essential repairs like a new roof or boiler, a secured loan can fund significant home improvements. These improvements may also increase your property value, partially offsetting the loan cost.
**Large Purchases** - Sometimes you need to make a significant purchase such as a vehicle for work, pay for education, or cover wedding expenses. A second charge loan provides access to larger amounts than unsecured options.
**Business Investment** - Self-employed individuals or small business owners with bad credit may use this type of loan to invest in their business, purchase equipment, or manage cash flow during difficult periods.
**Emergency Expenses** - Unexpected costs like medical bills, legal fees, or urgent repairs may require immediate funding when bad credit prevents access to other finance options.
Whatever your reason for considering a secured loan with bad credit history, advisors can assess whether it's the most appropriate solution for your circumstances or if alternative options might be more suitable.
Typical Loan Amounts, Rates and Terms
Secured loans are available for a wide range of purposes including debt consolidation, home improvements and large purchases. The rate you are offered will depend on your circumstances, the equity available, loan-to-value (LTV), income, and overall credit profile. A regulated adviser will explain the options available and whether a secured loan is appropriate.
How Lenders Assess Your Application
Lenders usually look at:
• Equity in your property
• Income and affordability
• The purpose of the loan
• Your credit history
• Current financial commitments
• Loan-to-value (LTV)
When assessing a secured loan with bad credit history application, lenders take a holistic view of your situation. While your credit history matters, it's not the only factor. Lenders understand that this type of loan applicant may have faced temporary setbacks like redundancy, illness, or relationship breakdown. What matters most is your current ability to afford the repayments and whether you have sufficient equity in your property. Our advisors works with lenders who specialise in secured lending cases and can present your application in the strongest possible way.
Improving Your Chances of Being Accepted
You may improve your chances by:
• Reducing unsecured debts where possible
• Keeping up to date with existing credit commitments
• Providing accurate income documentation
• Lowering the loan amount or LTV if appropriate
• Ensuring your credit report is correct and up to date
An adviser can review this with you as part of their assessment.
Secured Loan With Bad Credit History - Eligibility Requirements
While criteria vary between lenders, typical requirements for a secured loan with bad credit history include:
**Property Ownership** - You must own your property, either outright or with an existing mortgage. The property provides the security for your secured loan.
**Sufficient Equity** - Most lenders require at least 15-30% equity remaining after the secured loan. For example, if your property is worth £200,000 with a £100,000 mortgage, you have £100,000 equity available.
**Age Requirements** - Most lenders accept applicants aged 18-75, though the loan term must typically end before you reach 80-85 years old.
**Affordability** - You must demonstrate you can afford the monthly repayments alongside your existing commitments. Lenders will review your income and expenditure carefully for any homeowner loan application.
**UK Residency** - You typically need to be a UK resident to qualify for this type of loan, though some lenders have different residency requirements.
Our advisors can assess your specific situation against lender criteria to determine which secured loan with bad credit history options you're most likely to qualify for.
Alternatives to Secured Loans With Bad Credit
Depending on your circumstances, other options may be available, such as:
• A remortgage in the future if your credit improves
• Remaining with your current mortgage and taking a second charge
• A debt consolidation loan
• Working with a debt specialist if affordability is an issue
A qualified adviser will discuss these options with you.
How We Help
We work closely with , a fully qualified and FCA-regulated mortgage adviser who specialises in secured loan with bad credit history applications. They have extensive experience helping clients across Greater Manchester, including Leigh, Atherton, Tyldesley, Bolton, and Wigan, access specialist lenders for secured loan cases. Their approach is thorough and honest. They will review your credit file, assess your equity and affordability, and explain which lenders are most likely to approve your second charge loan application. If a secured loan isn't suitable for your circumstances, they will tell you upfront and discuss alternative options. If you submit an enquiry, they will contact you directly to understand your needs and recommend the most suitable solution, if one is available.
Secured Loan With Bad Credit History vs Remortgage - Which Is Better?
When you need to raise funds with bad credit, you might wonder whether a secured loan with bad credit history or a remortgage is the better option. The answer depends on your circumstances.
A remortgage involves replacing your entire mortgage, potentially accessing additional funds based on your property value. However, if you have bad credit, remortgaging can be difficult because you need to qualify for a new mortgage at current rates, and you might face early repayment charges on your existing mortgage.
A secured loan with bad credit history, by contrast, sits alongside your existing mortgage as a second charge. This means you keep your current mortgage deal and simply add the secured loan. This can be advantageous if you're on a competitive mortgage rate that you don't want to lose, or if your bad credit makes remortgaging difficult or expensive.
Additionally, secured lending applications often complete faster than remortgages, typically within 2-4 weeks compared to 8-12 weeks for a remortgage. Our advisors can calculate which option would be most cost-effective for your specific situation.
Ready to Discuss Your Secured Loan With Bad Credit History?
If you're considering a secured loan with bad credit history and want to explore your options with a qualified adviser, we can help. Get in touch today for a free, no-obligation consultation.
**Call Now:** 07539911696
**Or complete our contact-us and Sarah will call you back**
Important Information
A secured loan is secured against your property. If you do not keep up repayments, your home may be repossessed. Secured loans are subject to affordability checks, credit assessments and lender criteria. You should seek personalised advice before making any financial decision.
FAQs: Secured Loans With Bad Credit History
How much can I borrow with a secured loan with bad credit history?
Loan amounts typically range from £10,000 to £500,000 or more, depending on your available equity and affordability. The exact amount you can borrow with a secured loan with bad credit history depends on your property value, existing mortgage balance, income, and the lender's criteria. Our advisor can assess your specific borrowing capacity.
What interest rates should I expect for a secured loan with bad credit history?
Interest rates vary significantly based on your credit severity, loan-to-value ratio, and loan term. Rates for a secured loan with bad credit history typically range from 5% to 15% APR. While higher than prime mortgage rates, they're usually lower than unsecured bad credit loans. Our advisor can compare rates from multiple specialist lenders.
Can I get a secured loan with bad credit history if I'm self-employed?
Yes, self-employed applicants can get a secured loan with bad credit history. Lenders will typically require 1-2 years of accounts or tax returns to verify income. Some specialist lenders are more flexible with self-employed income assessment, which our advisor can identify for you.
Is a secured loan easier to obtain than a remortgage?
For some applicants with bad credit, a secured loan may be more suitable because it does not require changing your main mortgage. This depends on your circumstances and affordability.
How long does a secured loan take to complete?
Timescales vary by lender, but many secured loans complete faster than a remortgage. Your adviser will outline the likely timescales.
Will a secured loan help improve my credit history?
Keeping up with repayments may help your credit profile over time, but this depends on your overall credit behaviour. A secured loan should not be taken for credit-repair purposes alone.
Can I apply for a secured loan if I’m in a debt management plan?
Some lenders may consider applicants in DMPs, depending on affordability and equity. An adviser can check which lenders, if any, are suitable.
Important Information
**Your home may be repossessed if you do not keep up repayments on a secured loan or any other debt secured against it.**
A secured loan with bad credit history is secured against your property. Secured loans are subject to affordability checks, credit assessments and lender criteria. The loan will be registered as a charge against your property. You should seek personalised, regulated advice before making any financial decision.
Please note this page is for informational purposes only and should not be considered financial advice. For personalised advice about a secured loan with bad credit history, please contact today for a consultation.
Related Guides and Resources For more information about managing bad credit and accessing finance, explore these helpful resources: -
Expert mortgage advice for adverse credit cases
