Secured Loan Rates

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Are you planning a home renovation? Or do you want to raise capital for a new business idea? People need to borrow money for many reasons, but jumping into a loan agreement is a big mistake because there are many things to consider.
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Are you a homeowner or a tenant?

Are you planning a home renovation? Or do you want to raise capital for a new business idea? People need to borrow money for many reasons, but jumping into a loan agreement is a big mistake because there are many things to consider.

One of the most significant considerations is opting for a secured or unsecured loan. While unsecured loans don’t require security, you must offer your house or other valuable assets to the provider if you want a secured loan.

While secured loans are harder to get in some cases, they’re also the best option for many people as they’re more flexible and can save you a lot of money.

You’re probably thinking this all sounds great – but how much can I expect to pay back? There’s no set answer because your secured loan rates depend on your financial status and how much equity you can offer as security.

If you’re unsure how much you might pay back, stick with us because we have everything you need to know about secured loan rates.

What are secured loans, and why are they a good option if you want to borrow money?

Like many other loans, a secured loan means you can borrow money from a lender and pay it back in instalments. You’ll have to also factor in the amount of interest into your monthly repayments and keep up with them to avoid any repercussions from the provider.

Secured loans are also known as second charge mortgages or homeowner loans because the most common type of security providers ask for is your home. However, some will settle for a car or other valuable assets if they can cover the potential costs of the loan should you default.

These loans are a good option for many people because they’re not reliant on your credit score, which means anyone can borrow large sums of money – as long as you have collateral.

The benefits of secured loans over unsecured loans

Choosing between a secured and unsecured loan agreement can be a struggle as both have advantages. However, a secured loan might be the better option if you have a low credit score or want to borrow more money.

Here are the primary benefits of secured loan agreements.

Borrow more money

As a secured loan requires you to offer a valuable asset as collateral, you can usually borrow more. Most unsecured loans (or personal loans) are capped at £25,000 – but secured loans are ideal for large payments, with many exceeding £100,000+.

This is because lenders have security if you fail to meet your monthly repayments, and they can recover the outstanding amount through your home or other assets.

More breathing space

It’s rare for a personal loan payment plan to exceed seven years, so if you take out a large amount of money, you’ll pay a lot each month – especially with the added interest. Secured loans offer longer terms, which ensures you can pay off the required amount each month without worrying about financial repercussions.

If you have bad credit, you can’t get an unsecured loan

While some people believe they can’t get a loan with bad credit, a secured loan is one of the few options available. Lenders are less interested in your credit rating and more concerned with your assets, so this loan is often the best solution.

It’s important to know that a poor credit history might mean you have to pay higher interest rates. If you don’t have a good credit score, you won’t be able to apply for a personal loan (unless you’re willing to pay excessive interest rates).

What rates do loan providers offer?

If you want to be approved by a secured loan provider, it’s important to remember that every service is different – and each lender sets their own criteria and fees. There’s no set repayment amount because each agreement depends on your circumstances.

Let’s look at the factors that might impact your secured loan rates.


One of the biggest mistakes our advisors see is people agreeing to a loan without factoring in the additional costs. The amount a provider advertises is only part of the story – you need to consider how much interest you’ll pay back each month as well as the lender fee when you secure the loan.

In many cases, secured loans have lower interest rates than unsecured loans, but you might have to pay more if you get a low rating on your credit report. Before signing anything, make sure you use a loan calculator to determine exactly what you’ll pay each month.

Your Equity

Owning a property doesn’t automatically qualify you for a secured loan because the amount of equity you offer will be the defining factor. For example, imagine your home is worth £250,000 – but your mortgage makes up £235,000.

Your equity, in this case, will only be £15,000 – which means that your interest rates will be higher, and the provider might cap your loan amount to ensure you can meet your monthly payment obligations.

The LTV (loan to value ratio)

The loan-to-value ratio details how much upfront money you’ll have to pay towards the loan. Most secured loans have an LTV of 65% to 70%.

For example, if you’re applying for a homeowners loan for £100,000, you’ll have to pay between £25,000 to £30,000 towards the loan.

Payment terms

The best thing about secured loans is the extended repayment period, which means you’re locked into the loan for a long time – but you can afford those monthly repayments. The maximum payment term can be up to 30 years, but lenders will also set a minimum period.

In most cases, the minimum term is three years, but different companies will set their terms and conditions.

Could you get a secured loan?

If you want to take advantage of a secured loan, you should ensure you meet the eligibility criteria before applying. The most crucial factor is whether you have equity because every provider will expect you to offer some security – and most prefer properties.

Some people prefer the option of an unsecured personal loan because they don’t have to offer equity, but remember that these borrowing solutions are less stable. You’ll have to pay a lot of money back in a relatively short time.

Discover your eligibility with Believe Loans

At Believe Loans, we work with people to secure them the financial freedom they deserve. Whether you own your home outright or have an existing mortgage, our professional financial advisors can help you find the best loan provider for your needs.

With a zero hassle guarantee, our award-winning brokers will always go out of their way to handle all the heavy lifting – so you don’t have to.

Here’s what you get when you work with us.

We’re an award-winning team

In 2022, we set new standards for ourselves by winning a Mortgage Strategy Award for our services as a second-charge mortgage broker. The accomplishment only makes each member of our team work harder and continue the excellent service we’re known for.

You get more choice

When you work with a specific lender, you have to accept their rates, and there’s little room for flexibility. However, as a secured loan broker, we find the best solution for your needs and have strong relationships with numerous lenders.

Zero nasty surprises

The worst thing about sourcing a financial solution is working out how much you’ll have to pay in interest and broker fees. Unfortunately, some firms aren’t upfront about their costs, which can leave you with a nasty surprise.

We know that transparency is one of the reasons we’re award winners and guarantee that you’ll know what everything will cost upfront.

Get in touch with our friendly team today

Once you get in touch with our team, we’ll be able to discuss your current financial situation and assess your eligibility for a loan. Once this happens, and your application is successful, our team of brokers will search for the best secured loan that suits your needs.

You could borrow up to £500,000 with a loan interest rate of as low as 3.24%, so don’t hesitate to contact us. We’re dedicated to improving your finances and will do our best to help, regardless of your situation.

Why Use Believe Money?

Believe Money is an award-winning finance broker dedicated to offering the best range of affordable loan options. Whatever your circumstances or credit rating, we’re committed to getting you the best secured loan interest rates by searching our entire panel of secured loan providers.

Whatever you need a secured loan for, we’re here to help. Our specialist advisors are available Monday to Friday, so if you need any help please contact us online or give us a call on 01302 591 360.


Is there a difference between a secured loan and a second-charge loan?

In technical terms, both are the same. However, your mortgage is already a secured loan, so if you plan on taking out a secured loan and you’re already paying off a monthly mortgage, it’s then referred to as a second-charge loan.

What can I use my loan for?

If accepted for a secured loan, you can spend the money on anything you want (as long as it’s legal). Some people use it for home renovations or securing another property, while others might prefer to invest in a new business or go on that dream cruise.

What happens if I don't meet my monthly repayment obligations?

If you apply for a secured loan and fail to make regular payments, you could be in a lot of trouble. Most lenders require your home as collateral and will use it to recover your debts, which might leave you homeless. 

What if I want to pay off my secured loan quickly?

There’s always the possibility of paying off your loan sooner than planned, but early repayment fees can sometimes apply. The amount you pay depends on the provider, but most early repayment charges include 1-2 months of interest on top of the outstanding amount.

While you might have to pay extra, you can avoid a more extended period of monthly repayments and get back on track.

Believe Loans Ltd, FCA 786476, is an Appointed Representative of Believe Advisor Limited which is authorised and regulated by the Financial Conduct Authority under FCA number 841395.

How It works

Step 1.

Simple, easy application

Step 2.

We search our panel of lenders to find the deal that’s right for you

Step 3.

When you confirm your chosen deal, we get your application moving

Step 4.

The money lands in your bank
account – usually within two weeks

We compare loans from our panel of the UK’s top lenders to get you the best deal.


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