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Author: Carl Shave-Director
Updated on February 16th, 2024

Secured loans with bad credit

There are many reasons people want to obtain a loan secured on their property or other assets. You may need the extra funds to cover a significant purchase, invest in a business, or to help a relative. At The Mortgage Centres we can help you obtain a secured loan even if you have had credit issues.

Get in touch for a free initial, no-obligation discussion about your mortgage situation.

If you have bad credit and apply for a secured loan, you may face difficulties or challenges. However, our experienced advisers have helped a great number of people with bad credit successfully obtain a loan. We specialise in exploring every possible avenue to find the best possible deals and rates on secured loans.

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Can I get a secured loan with bad credit?

Getting a secured loan with a bad credit history is possible and we have helped many people to do so.

Typically, approaching mainstream high-street lenders can make it very difficult to get accepted. However, the outlook is not all bad as there are a range of specialist lenders available. These lenders tailor their products to individuals who have experienced bad credit. Therefore, for many, applying with them can heavily increase your chances of success.

When deciding if a secured loan is the best solution for you, you’ll need to take a good look at your requirements. Ensuring you are in a position to take on more credit is essential, otherwise, your history could be further damaged.

At The Mortgage Centres we have access to the whole of the UK lending market. We aim to identify the most favourable and competitive deals when we source loans. If you want to find out what secured loan options are available to you, get in touch today.

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What is a bad credit secured loan?

Bad credit secured loans are specifically designed for borrowers with a bad credit history. They can help individuals who need a sizeable amount of finance but have been declined by mainstream lenders.

These loans are secured against your property and will typically be repaid over a 25-30 year period. However, you need to make sure repayments are made. This is because the loan is secured against your property. This means if you fail to make payments, your property could be repossessed.

What are bad credit secured loans suitable for?

Often, these loans are used if an individual has a number of expensive debts. The capital from the secured loan will then be used to pay these debts off, consolidating the debt into a single, more manageable commitment. This will then be paid off over a set period of time.

You are likely to find that the interest charged on a bad credit secured loan is lower than that for a guarantor loan or a payday loan, and could even be cheaper than some credit cards, making them a popular choice for individuals with bad credit.

That said, bad credit secured loans should not be seen as some kind of magic wand. They should only be used when you have exhausted other options. These loans still have higher rates of interest and longer repayment terms than general loans. This means the loan will likely cost you more in the long run.

How much can I borrow with a secured loan if I have bad credit?

You can typically borrow anything from £10,000 to as much as £75,000 if you have bad credit.

However, you could borrow more if you are able to show your credit situation has improved. Using the right lender, you could borrow approximately £100,000. Remember though, each individual application is handled differently by the lender. Just because someone borrowed £100,000 from a lender, it doesn’t mean you will be able to.

To ensure your best secured loan with bad credit, get in touch today. Our expert advisers are on hand to guide you through the whole process.

What bad credit is acceptable to obtain a secured loan?

Specialist bad credit loan providers will accept applicants with all kinds of bad credit events on their financial history. This could be from just a few blips in the past, to more significant issues like a county court judgement (CCJ).

Remember, it’s not just people with adverse credit events on their records that have trouble finding loans. Potential borrowers who are new to using credit, with very little or no credit history, will also struggle. This is because mainstream lenders believe they do not have enough of a record to judge their borrowing history.

So, if you’ve suffered a CCJIVA, a default notice, or even missed payments on a personal loan, get in touch today.

Are secured loans the best option for people with bad credit?

There are a number of factors that will determine this such as:

  • How much you need to borrow?
  • How long you need to repay the loan?
  • How will the comparative interest rates work out over a period of time?
  • Your chances of being accepted.

Homeowners with bad credit are more likely to get approved for a secured loan instead of a personal loan, saving you time and money. This is because you won’t need to spend time and money applying for a personal loan.

A secured loan’s flexibility is its main advantage, because:

  • You can borrow more than with a personal loan.
  • The repayment period can be much longer.
  • The eligibility criteria are more relaxed than a personal loan.

But, it’s important to understand that the loan is flexible because it’s secured by your property. Therefore, a lender’s level of risk reduced. As your home could be at risk, you should always be careful when taking out a secured loan. It’s important to have terms that you know you can afford in the long run, if interest rates were to rise.

How much does a bad credit secured loan cost?

Bad credit secured loans are worked out on an individual basis, according to your personal circumstances and budget so, there is no set template for how much they could cost. The total amount will vary depending on three factors: the amount borrowed, the repayment period, and the borrower’s credit history.
One tip to keep costs down is to arrange a shorter repayment period, which will mean lower interest charges, but you’ll need to make higher monthly payments in order to achieve this.

You can also use a specialist broker to unlock more favourable and competitive deals in the market. Even though you are paying for a broker’s services, in the long run, you are likely to save this cost in interest rates.

Bad credit secured loan brokers

Working with a team of highly experienced advisers will give you the best chance to find the best result for your circumstances.

As a homeowner, you could get a loan secured against your house to raise cash or credit for a range of purposes. We’re here to help to make it much more straightforward with our practical, sympathetic approach.

What we do:

  1. We’ll talk to all potential borrowers, whatever their credit scores.
  2. We conduct soft-footprint credit checks.
  3. Our in-house team includes specialist secured loan brokers.
  4. The Mortgage Centres makes the process as simple as possible.

If you want to discover what you could borrow with a secured loan, please get in touch today. We will pair you with one of our expert advisers who will guide you along the way.


Bad credit secured loans FAQs

  • Can I get a homeowner loan with bad credit?
  • Can I get a homeowner loan without a guarantor if I have bad credit?

Yes, it is possible. We handle loan applications and liaise with a range of specialist lenders for people with bad credit events on their history on a routine basis.

A lot will depend on the severity of their bad credit history. Please note that short-term loans like payday loans may actually do more harm to your credit rating than good, even if they are paid in full and on time.

It very much depends on your individual circumstances, and the credit issues you may have had in the past.

It can be difficult to obtain an unsecured loan without a guarantor due to the levels of risk the lender will perceive. Most unsecured loans that take bad credit into account are offered with guarantors. The rule may not always apply in cases where the loan is connected to a secured loan or mortgage. This is because the rules for guarantors are different in these situations.

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