Secured Loans Bad Credit Direct Lender Deals 2025

Are You Looking For A Direct Lender Homeowner Loan?

Please complete the form below to be referred to a direct lender. The system will calculate the loan-to-value you require and refer you to the most appropriate direct lender.

All the direct lenders are not offered on the leading comparison sites.  There are no early repayment charges, and the rates are between 6% and 8.5% fixed. As they are direct lenders, there are no broker or lender fees.

Do any of the following apply to you?

• Do you need to reduce your monthly outgoings and rid your life of high cost credit?
• Are you looking to raise funds to make home improvements or buy a new car?
• Have you been recently turned down for a loan?
• Do you have a poor credit history or have you missed recent loan or credit card payments?
• Do you have little equity in your property?
• Do you want a lender that will give you a payment holiday if you need one?

Direct Lender 1:

• Up to 85% loan to value
• CCJ’s and defaults for small amounts ignored
• No current mortgage arrears accepted
• No brokers fees
• Can be used for debt consolidation
• Payment holiday once a year
• No new CCJs or defaults in your file in the last 6 months accepted
• Secured loans with bad credit at 6.3% APRC

Direct Lender 2:

• 75% loan to value
• CCJs and defaults for small amounts ignored
• No new CCJs or defaults in last 3 months
• No current mortgage or secured loan arrears acceptable
• Recent missed credit card payments and missed loan payments ok
• No brokers fees
• 7.2% APRC fixed for life of loan

Direct Lender 3:

• Up to 94% LTV
• Any CCJs or defaults need to be more than 2 years old
• Defaults and CCJs for small amounts ignored
• Recent missed credit agreement payments ok
• No brokers fees
• Can be a 3rd charge loan
• Ok to use for debt consolidation
• 8.2% APRC fixed

Pre-Decision In-Principle Application Form:

Homeowner Loans From The UK’s Best Direct Lenders. Flexible Repayments. Sympathetic To Past Credit Issues.

Are direct lender secured loans with adverse credit a common request?

1st UK Money specialises in assisting homeowners with a poor credit rating to break through the barriers and find secured loans bad credit direct lender products that suit them.

We make the process as easy as possible, consider all circumstances and have access to Specialist Lenders with Unique Products.

That means we can and will search our Panel of Specialist Lenders to find a suitable secured loan regardless of how impaired you think your credit file is… chances are, lenders have approved on worse.

How Secured Loans with Bad Credit Score Work – Clearing Your Unsecured Credit?

For those with a bad credit history, loan refusals become somewhat the norm. Banks, building societies, and other mainstream lenders will use automated screening processes using historical financial data on your credit report.

This usually results in a rejection and a brutal hit on your credit report, making it even more challenging to obtain a secured loan with bad credit. But you can still save money, as secured loans typically have lower interest payments.

The best secured direct lender loan is the one that fits your circumstances, as many lenders are very fussy. If you have a partner with a good credit score, this could help with how much money you can borrow. Your utility bills must be paid on time, as all this personal information will be part of your repayment plan.

Getting a secured loan or other second charge mortgages will take time, and a soft search by an appointed representative will help you.

Low rate secured loans for bad credit offers

Some Benefits That Are Worth Considering:

• “Special Lenders” Not Featured On The Comparison Engines With Great Terms
• Match The Term Of The Loan To the Remaining Term Of Your Mortgage
• Find a lender that will give you payment holidays when an unexpected expense arises
• Great For Clearing Other Loans/Credit Cards/Existing Car Credit, so you have a better repayment schedule
• Constantly updating our Unique Products for people with varied credit histories
• High LTV With Some offers
• Fixed, Tracker, Discounted and Variable rates for people with standard credit ratings
• Keep Your Existing Mortgage With No Worries
• Free, no-obligation enquiry with loan advisors with excellent customer service
• Find out the APRC representative and the total amount payable, and it won’t affect your credit

What’s Meant By A Bad Credit Secured Loan?

For those with very bad credit, loans are hard to come by. Searching online on comparison sites will yield very little success; however, it can be beneficial as a starting point.

There are far too many variables, but the most important variable is that you need to use a specialist lender. Bad credit finance options are unavailable from mainstream banks and building societies on the high street. Those lenders are referred to as prime lenders meaning they cater to those with a reasonable credit history.

Repayment periods can be longer on secured loans, running up to 30-years. However, shorter repayment terms are available so it would be possible to use a bad credit secured loan for a lower amount of finance if, for example, you’ve been rejected for a standard unsecured (personal) loan by using your home as security.

When your financial records show lenders that you’ve previously defaulted on any financial product, all lenders will scrutinise the application more thoroughly.

They need a way to minimise the risk of defaulting on the loan repayment, and the easiest way to do that is by using your property as security. It is rare to find any lender offering loans for bad credit, with no guarantor or security being required. Using your home is a surefire way to lower the risk level your credit files present to a lender.

Bad Credit Secured Loans Direct Lender -How to Make Sense Of It All

Once you know you need to use a subprime lender to access a loan for any amount, the next choice you need to make is whether to work directly with the lender or use a broker or advisory service to help you secure the finance you need.

To access secured loans for bad credit, direct lenders are companies that work exclusively with you and provide the finance. The alternative and often preferred method is to use a mortgage broker or advisory service. Finding your way around financial products is not an easy feat.

You will come across a variety of terms, often confusing. The 1st UK Money team’s objective is to keep things as simple as possible for our customers.

The Suitability Of Our Bad Credit Secured Loans Direct Lenders

Whilst we have a high success rate in securing loans for our customers, we advise you to consider your options carefully because the finance is secured against your home.

It’s a lower level of risk to lenders, but it’s higher for you, the borrower. There is a real risk that if you run into financial trouble during the term of your loan, you will be putting your home at risk.

The longer you take the secured loan repayment terms, such as 25-30 years, the lower your monthly repayments will be. That said, the lower your monthly repayments are, the longer it’ll take to repay in full, so a higher amount of interest will be charged over the term of the loan.

What can happen is when people with a bad credit rating find themselves unable to access a personal loan, or a debt consolidation loan, they’ll try to get the same amount approved by a lender using their home as security, thus lowering the interest rate. This can work, making it a viable financing alternative for clearing personal debts such as high credit card balances, car repayments, and other personal debts that come with a high APR because of poor credit.

Acceptable Bad Credit Entries On Your Credit Files And Applying For A Loan

We will consider all circumstances and work with lenders to secure the finance you need. The most severe credit entry to have on your credit file is bankruptcy. Most lenders won’t consider a secured loan for applicants who have declared bankruptcy in the last six months to 1-year. The longer it happened, the better chance of securing finance.

All other circumstances can be approved, provided your application is sent to the most appropriate lender. The more we know about your personal financial circumstances, the better a position our team will be in to know which subprime lending company would be the most likely to approve a secured homeowner loan based on your individual personal circumstances.

It could be that there have been minor defaults reported, or perhaps just one missed payment, even a missed mortgage payment, or perhaps there’s not enough of a credit history for a lender to assess your risk level, such as if you’ve never taken out credit before.

Having no credit history can present the same problems as having bad credit entries on your credit files because it’s impossible for lenders to risk assess your application. It is still possible to reduce the risk presented by increasing the deposit amount, thus lowering the LTV (Loan-to-Value) amount, such as borrowing £40,000 on a property worth £100,000 – 40% LTV.

While we consider all forms of bad credit entries, only a few specialist subprime lenders will cater to more extreme defaults such as bankruptcy and CCJs.

Is a Bad Credit Secured Loan the Best Option for You?

Homeowners with a bad credit history will be more likely to be approved for a secured loan than a personal loan. Still, it’s not a decision to take lightly just to be approved.

An unsecured loan is the cheaper option in terms of the total amount of interest payable due to it being taken over shorter repayment terms.

Some Common Reasons for Taking Out a Secured Loan Include the following: 

• Repaying a loan over a longer period, such as 20 years instead of 7 years, lowers the monthly repayments. Pay it back at a slower, more affordable pace that suits you.
• Being able to borrow more than you would be able to access using an unsecured loan. Typically, its amounts of over £25,000.
• The eligibility criteria for secured loans are not as strict as for unsecured finance because security is offered to the lender.

The Burning Question – How Much to access a secured loan direct lender?

Is there a Secured Loans Bad Credit Calculator to Work Out the Total Cost of a Loan? 

Using any mortgage calculator online will only give you an average repayment cost. Interest rates are variable, and the total amount repayable reduces each year as the capital of the loan is reduced.

Flexible proofs of income, including:

• Pensions
• State benefits
• Investment Income
• Self-employed
• Full and part-time employed
• Lodgers rental income
• Income from buy-to-let properties

The equity you own in your home is yours. We help you use your home equity as security by arranging secured finance at the best interest rate we can help you secure. How you choose to use your equity once it’s released is entirely up to you.

The tricky part is getting through the financing process without a glitch or any more damage to your credit report.

When you work with our team…

• We ensure there is only a soft print on your credit files, meaning your credit score isn’t affected.
• You get our in-house expertise in the entire subprime mortgage market, ensuring you get the right deal for your circumstances.
• We talk in plain terms, explain what we need from you and why and make the process as simple as possible with minimum hassle and no commitment.

Secured loan lenders in the 2025 marketplace – key other loan rate details

There are many second charge lenders in the market today that are willing to lend against the stable and secure UK property market.

In early 2025 alone, another four lenders approached 1st UK Money looking for business. Some are willing to lend at a high overall LTV; some lower-rate lenders are more conservative with their LTV.

Secured Loans Bad Credit

Many people are searching for secured loans bad credit, as cheap houses for sale Northumberland are not mortgageable, and secured loans are a great way to raise cash, using your primary residence.

To find some breathing space between credit card payments and other loan options, look for 2nd charge secured loans you are likely to be accepted for, with a repayment term you can afford or matched to your existing 1st charge mortgage. A poor credit homeowner loan will likely involve a credit check with at least one of the credit reference agencies and providing proof of your employment status.

Homeowner loans direct lenders only

If you are looking to avoid a large broker’s fee and want a lender to do all the work that the broker does, you are likely searching for direct homeowner loans. The problem with this is a good broker will know many lenders’ products very well and even know people who work in the underwriting team.

If you approach lenders directly, you might get a series of rejections from which an experienced broker would have protected you. Hard footprints in your credit file could make you look bad to the right lender.

The total amount payable on loans secured on your home is a good thing to consider. You should study the representative example and look at the important information from the lender, as there are many reasons you could not be getting the best homeowner loan rates.

Secured loans for bad credit instant decision options in November 2025

An experienced broker can ask questions and place you accurately with the right lender that should accept you. So, if you are truthful about your circumstances and your means and can prove what you say, an instant decision in principle, should be achievable.

Finding secured loans online may be a challenge, and lenders want to see lots of information about your affordability.

UK Secured Loan Lender Reviews Where Adverse Credit Is Accepted.

If you want to do your homework on individual lenders, you may want to read a Norton Finance Review, a United Trust Bank Review or some Pepper Home Loans Reviews. They all occupy slightly different parts of the secured loan market in terms of risk tolerance, loan-to-value criteria and speed of applications.

Some of the most trusted lenders for speedy completions are Masthaven Bank, Together, Paragon, Spring Loans and Precise Mortgages.

A Broker Not A Lender Could Be The Key For A Secured Loan Bad Credit Direct Lender?

1st UK Money is a broker, not a lender, and offers a service for people who want to borrow money with low monthly loan repayments.  To get an adverse credit secured loan, sometimes you need to pay a lender fee or a broker fee, but it can be worth it for people looking at consolidating existing borrowing and saving money.

High street lenders will likely turn you down if a county court judgement shows on your credit record for a low amount.  But some of the 1st UK Money lenders, including 1st Stop Loans will help you compare loans from lenders that ignore missed payments on existing debts and give you great loan rates at a low overall cost.

You should spend time on your secured loan application, especially for debt consolidation, and be sure you can afford the payments, considering the annual interest rate could increase. This will help you get a better rate and save money.

Bad Credit FAQs Relating To Home Owner Loans And Credit Ratings

Is the right secured loan the one with the lowest rate?

No, not necessarily. The monthly repayment may reflect other costs, including fees added to the loan. The loan rate is an excellent place to start. Evolution Money has some reasonable rates; you can improve your credit score by managing your monthly repayments. Evolution Money also has some options for payment holidays.

Is a large monthly repayment a serious commitment?

Yes, it would be best if you considered the total repayments on the right loan. Sometimes, if you have a lot of unsecured credit, you may be better off keeping the original debt. Be cautious of other types of consumer credit.

I only need a smaller £10,000 secured loan paid back over 10 years. Can you arrange this?

Secured loans with a term of 10 years are available in the United Kingdom. A secured loan is a credit facility that requires collateral, often your property, to secure the debt. If you default on the loan, the lender is legally entitled to seize the asset.

Numerous financial entities in the UK, ranging from prominent banks to niche lenders, offer secured loans that can be repaid over a decade or longer. The lender determines the borrowing limits, interest rates, and specific terms, which can vary according to your financial situation.

Who is 1st UK Money? How do we help people with poor credit get loans?

We are a credit broker, not a lender, with a registered office in Southwest London. We don’t just offer home loans; we can offer exactly what you need for equity release and remortgages.

Many other lenders have a good representative APR with clearly shown maximum APR rates. If you have difficulty understanding some of the terminology, you can ask a family member exactly what things like representative APR means.

You can contact 1st UK Money if you want a new loan or a higher LTV than you currently have. Suppose you have more equity since your last loan application. In that case, you might get lower interest rates, significantly if your current circumstances have improved and you may have acquired other assets.

Applying for a secured loan with long-term lower rates and longer terms

If you have less than perfect credit and are interested in improving your credit, you could find a loan you can pay just after your payday to ensure the repayments are on time. Other factors that will give the perception of less risk to the lender are making a joint application and ensuring you are on the electoral roll.

A secured loan with poor credit can have a much lower service cost than many other credit agreements.

Can you get a loan for 25k, which is ideal for more significant amounts of cash?

The key issues with 25k loans are early repayment fees, the impact of mortgage arrears, the disappointing home valuation and the evidence of gambling on bank statements. The demand for secured loans for bad credit direct lenders in February 2025 is very high.

Are you able to get 2nd charge mortgage rates with low monthly repayments?

The key issues with second mortgage rates are variable base rates, the effect of CCJs, the home valuers’ forced sale price and insufficient personal income. There is a massive demand for a homeowner loan for bad credit, especially in the south-east of the UK.

Can you borrow to get secured loans with a fixed interest rate with repayment over five years?

The main characteristics of a fixed rate 2nd charge loan are intolerant eligibility criteria, the effect of CCJs, the discounted home valuation and the evidence of a fraudulent application.

Can you get a homeowner loan with no phone call for debt consolidation?

The main issues with secured loans no phone calls are intolerable eligibility criteria, the impact of CCJ’s, the delays in the lender’s valuation and the evidence of payday loans on bank statements.

Are you looking for homeowner secured loans for bad credit, even with adverse credit?

The key features of bad credit loans homeowners are poor credit intolerance, the effect of CCJs, disappointing property valuation and evidence of gambling on bank statements.

Are you considering fast secured loans for bad credit UK without a second charge?

The main features of secured loans for poor credit are the score from the credit check, the impact of defaults, the 3rd party valuation of the home pledged as collateral and the evidence of payday loans on bank statements.

With the rise in fintech and automation, people demand secured loans for bad credit, with an instant decision. Now, lenders can data mine people’s bank accounts with open banking.