Secured Loans Bad Credit Direct Lender
No broker fees on our direct-lender secured loans. This page is leased to them every month.
- Rates as low as 4.79% for 2nd and 3rd charges for larger amounts over £10,000
- Up to 90% LTV (loan to value) for a Secured loan, bad credit direct lender
- An open-minded view is taken of all forms of adverse credit.
- No early repayment charges
- Valuation fee is only £295 for most properties, and can be added onto the loan and doesn’t need to be paid upfront
Please fill in the form below.
A secured loan for bad credit is usually considered by homeowners who want one clear monthly payment, often for debt consolidation, home improvements or a larger planned purchase.
The useful part is that the lender looks at more than the credit score. Income, the value of the property, the amount already owed on the mortgage and the size of the new loan all matter.
For many people, this is easier to understand than chasing several small balances, especially when different lenders collect payments on different days of the month.
A direct-lender route for homeowners
The page is mainly for people who want a secured loan and would prefer not to pay a large broker fee. A direct-lender route can keep the application simple and may reduce the upfront cost.
If you want a loan arranged against the home you live in, the secured loans for a primary residence page gives a more general version of the same idea.
Some applications are for a second charge behind an existing mortgage. In that case, it can help to look at current second mortgage rates before deciding how long you want the term to be.
What lenders usually look at
A lender normally wants a clear picture of the property and your income. The application is not only about what happened on a credit file years ago.
Bad credit can cover missed payments, older defaults, CCJs, low credit limits or a thin credit history. These are different situations, so they are not always treated in the same way.
The lender will also consider the reason for borrowing. Debt consolidation is common, but a secured loan can also be used for practical work on the property. A homeowner planning building work may find the page on loft conversion finance useful.
Where the aim is to borrow a set amount, the secured loan for £25,000 page explains that type of application in a more direct way.
Keeping the monthly payment steady
Some borrowers prefer certainty. A fixed monthly payment makes the loan easier to budget for, especially when it is replacing several smaller payments.
A fixed-rate secured loan can suit people who want their payments to remain the same for the agreed period.
Other borrowers care more about the application style. Some want to apply online and keep phone contact to a minimum, which is why the secured loan with no phone calls page may be a better fit.
Bad credit does not make every case the same
Two people can both describe themselves as having bad credit but have very different applications. One may have older credit issues and strong income. Another may be self-employed with accounts that need a little more explanation.
This is why a plain yes-or-no view of bad credit is not very helpful. The better question is whether the loan amount, property value, income and term sit together sensibly.
For people who want to read around the subject first, homeowner loans for bad credit explains the wider homeowner-loan side without getting too technical.
Applications can also look different for rental property. A landlord wanting to borrow against a let property may prefer the separate page on secured loans for landlords.
What the application can cover
Many secured-loan enquiries are made because borrowers want to tidy up existing credit. One payment can feel easier to manage than several payments scattered throughout the month.
Other enquiries are for home repairs, family costs, a car purchase, business cash flow, or a deposit for another property. The reason matters because it helps shape the loan amount and term.
People under 55 sometimes look at pages aimed at older borrowers and find they do not fit. The under 55 borrowing page is there for that younger group.
A secured loan can also be secured against an existing mortgage. This can be useful where the current mortgage is worth keeping, and the new borrowing is better arranged separately.
Proof of income and property value
The lender will usually ask for income details. Payslips, pension income, business accounts, dividends or bank statements may all be relevant, depending on how the applicant is paid.
The property value is also important. Some cases use an automated valuation, while others need a valuation visit. The aim is to put a fair figure on the home before the offer is prepared.
If more than one person owns the property, a joint application is often the cleaner route. It can also make the income picture clearer.
Making the enquiry easier to read
A cleaner application is often a quicker one. It helps to have a rough idea of the property value, the mortgage balance and the amount you would like to borrow.
The lender does not need a life story. It is better to give clear figures and a short explanation of what the loan is for.
Where the loan is for consolidation, it can help to know which balances you would like to clear first. That gives the lender a practical view of the new monthly payment.
Where the loan is for home improvements, it helps to have a sensible estimate. A written quote is useful, but an early enquiry can still be made before every small detail is known.
How a lower monthly payment is usually found
The monthly payment is shaped by the amount borrowed, the rate and the term. A longer term can reduce the monthly figure, while a shorter term usually clears the borrowing more quickly.
Some borrowers want the lowest monthly payment. Others want a balance between a comfortable payment and a term that does not run for too long.
That is why it is useful to compare a few terms before making a choice. A small change to the term can make the payment feel quite different.
Early repayment flexibility can also matter. If you expect a bonus, sale proceeds or a remortgage later, it is worth choosing a loan that works with that plan.
A few common questions
Can the term match my mortgage? With many lenders, the secured-loan term can be chosen to sit neatly alongside the existing mortgage term.
Can self-employed income be used? Yes, self-employed income is commonly considered. The lender will want to understand how the income is shown.
Can pension or benefit income be included? In many cases, it can, as long as it is clear and regular.
Will there be a credit check? A credit check is part of the process, but a soft search may be used early on to provide an initial view.
Can the application be online? Yes. Many people prefer to start online, then provide documents once the basic details have been checked.
The form above is the simplest place to start. Provide the basic details, choose the amount you want to borrow, and the lender can review the case properly.