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Secured Loans With Bad Credit – 2021 Direct Lenders

secured loans with bad credit

Secured loans for bad credit – direct lender offers

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
  • 6.9% 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
  • 7.9% APRC fixed for life of loan

Direct Lender 3:

  • Up to 95% loan to value
  • 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

Other niche direct lenders with different terms are available, ALL with no broker fees.

Pre-Decision In Principle Application Form:

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

  • Secured Loans
    Get your 1 minute no obligation quote
  • Please enter a number from 10000 to 25000000.
    Please enter a value between £10,000 and £25,000,000
  • Please enter a number from 50000 to 25000000.
    Please enter a value between £50,000 and £25,000,000
secured loans for bad credit

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?

Secured loans with bad credit direct lenders – a common request?

1st UK Money specialise in assisting homeowners with a poor credit rating to break through the barriers and find suitable secured finance options and we specialise in secured loans with bad credit.

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.

homeowner loans for bad credit

Are You Looking For A Homeowner Loan?

Please Complete Our No-Obligation Enquiry Form Below And Let Us Help You.

  • Secured Loans
    Get your 1 minute no obligation quote
  • Please enter a number from 10000 to 25000000.
    Please enter a value between £10,000 and £25,000,000
  • Please enter a number from 50000 to 25000000.
    Please enter a value between £50,000 and £25,000,000

Some Benefits That Are Worth Considering:

  • “Special Lenders” Not Featured On The Comparison Engines With Great Terms
  • Match The Term Of The Loan To Remaining Term Of Your Mortgage
  • Find a lender that will give you payment holidays when an unexpected expense appears
  • Great For Clearing Other Loans/Credit Cards/Existing Car Credit
  • Constantly updating our Unique Products
  • High Loan-To-Value (LTV) With Some Direct Lenders
  • Fixed, Tracker, Discounted and Variable rates
  • Keep Your Existing Mortgage With No Worries
  • Free, no obligation Enquiry
homeowner loan bad credit

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 found on your credit report. This usually results in a rejection and a hard hit left on your credit report making it even more difficult 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 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. It’s important that even your utility bills are 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 getting a soft search by an appointed representative will help you.

What’s Meant By A Bad Credit Secured Loan?

For those with very bad credit, loans are definitely 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 not available 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.

Successful secured loans with bad credit history applications are all to do with an in-depth knowledge of the lender’s criteria. Some lenders are very fussy and some are willing to overlook certain elements of people’s current and past credit accounts.

A bad credit secured loan is a financial product for people that lenders see as having an unsettling credit score and it requires security. Your home is the security and it can be used to access finance for as much as £100,000 if required. All secured loans will be means-tested to ensure you can comfortably afford to repay the monthly payments even if the interest rates were to rise.

The interest rates are higher than standard mortgage products but nowhere near as high as they would be on un-secured loans with bad credit because your home is used as collateral to reduce the level of risk to the lender, so in effect: they level the playing field.

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.

What they need is a way to minimise the level of risk there is of you 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 without any type of security being required. Using your home is a sure-fire way to lower the risk level your credit files present to a lender.

Secured Loans, Bad Credit, Direct Lender Etc. 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 who work exclusively with you and provide the finance. The alternative method and often the preferred 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 resulting in confusion. The 1st UK Money team’s objective is to keep things as simple as possible for our customers and we use our knowledge of the mortgage market and our understanding of each lender on our panel to find the right lender willing to accept the level of risk a potential customer presents. In our experience, most customers think their credit history is worse than what lenders actually see as high-risk.

homeowner loans for poor credit

The Suitability Of Our Bad Credit Secured Loans

Whilst we do have a high success rate in securing loans for our customers, we do advise that you think your options through very carefully because the finance is secured against your home. It’s a lower level of risk to lenders, but it’s far higher for you, the borrower. There is a real risk that if you run into financial trouble during the term of your loan, you would 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 there will be a higher amount of interest 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.

Because the loan is secured against your property, it’s likely that a secured loan for bad credit applicants will have a lower interest rate, but higher overall interest charged if it’s taken over a longer period. This is why the secured loan option can be suitable for multiple purposes. The only thing you can’t do with a secured loan is to use it for business purposes because that presents the lender with a real risk they won’t take on due to not knowing what profits and therefore income if any, the business would produce.

secured loan bad credit history

Acceptable Bad Credit Entries On Your Credit Files plus 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 6-months to 1-year. The longer ago it happened, the better chance there is 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 do consider all forms of bad credit entries, there are only a few specialist subprime lenders that will cater to more extreme defaults such as bankruptcy and CCJs.

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

Homeowners with a bad credit history will find themselves more than likely to be approved on a secured loan than they would a personal loan, but it’s definitely not a decision to take lightly just for the sake of being 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: 

  • Repaying a loan over a longer period of time, such as 20-years instead of 7-years, so lowering the monthly repayments.
  • Being able to borrow more than you would be able to access using an unsecured loan. Typically, amounts of over £25,000.
  • The eligibility criteria on secured loans are not as strict as they are for unsecured finance, because there is security being offered to the lender.
adverse credit secured loan broker

The Burning Question – How Much?

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.

There is no way to know what the total cost of a bad credit secured loan will be until you know the interest rate you’re offered. There’s no universal acceptable rate for subprime mortgages as the interest rate you’re offered will be dependent on the nature of adverse credit you’re affected by. The more severe the negative credit entry/entries are, the higher the interest will be. Likewise, with minor defaults, the interest rate you’re quoted will reflect the lower level of risk involved.

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 property rent

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 being done 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 of the entire subprime mortgage market making sure 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

Why Choose 1st UK Money for Bad Credit Secured Loans

Our team has years of experience in the mortgage field, knows all the subprime lenders, and has dealt with some severely impaired credit scores successfully. Our aim is simple and that’s to help those with bad credit access what they already own. Equity in your home. We make it easy for homeowners to raise finance when the mainstream lenders refuse.

We work with hundreds of lenders, some of which are extremely specialist lenders laser-focused on serving customers with disadvantageous credit reports. We’re all experienced, non-judgemental, down-to-earth and will help you navigate your mortgage options to find the best deal that’s a perfect fit for you.

Get in contact with us today to find out how (not if) we can help secure the finance you need.

Secured loan lenders in the 2022 marketplace – key other details

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

In November 2021 alone another 4 lenders approached 1st UK looking for business. Some are willing to lend at a high overall LTV, some lower rate lenders are more conservative with their LTV (loan to value).

Some lenders are willing to be less concerned about unsecured borrowing commitments and some are keen to see affordability across all the borrower’s credit commitments.

It is important to think carefully before securing debts against your home as your home may be repossessed if you do not make the monthly payments on the bad credit loan. Make sure you deal with someone that is authorised and regulated by the financial conduct authority registered in England (United Kingdom) with a valid reference number, company number, or registration number. Check your credit history for yourself by contacting all the credit reference agencies and try to improve your credit by avoiding payday loans, gambling, and other things that could cause credit problems.

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.

If you want to borrow a more considerable amount of money that is traditionally a larger loan amount than you can get with unsecured personal loans or friend/family guarantor loans, a loan secured on your home could be the cheapest way. If your lender deals through a broker only you may need a credit broker. Credit checks are normal, and if your credit score is poor, a higher interest rate is likely. You must keep up repayments on a debt secured on your home.

Homeowner loans direct lenders only

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

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

A good thing to consider is the total amount payable on loans secured on your home. 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 rates. Taking out a loan for large amounts of money at a higher rate for the luxury of a new kitchen or bathroom may prove to be unwise.

Secured loans for bad credit instant decision

An experienced broker will be able to ask you questions and place you quite accurately to the right lender that should accept you. So, if you are truthful about your circumstances and your means, and you can prove what you say, some sort of instant decision in principle should be achievable. Finding secured loans online decision may be a challenge, and the lenders want to see lots of information about your affordability.

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 a 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.

The loan amount depends on how much equity you have, your poor credit score, the proof from your bank account, your property value, and your level of unsecured debt.  If a county court judgement shows on your credit record for a low amount, high street lenders will likely turn you down.  But some of the 1st UK Money lenders 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.

Missed repayments on other debts secured on your home, depending on your individual circumstances are much more serious than other consumer credit payments or unsecured credit agreements.

If you have a higher credit score and very little other debt your financial future is much better and cheaper as long as you don’t miss payments.

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

If you commit to a substantial loan term from a lender like Norton finance or a deal through a loans warehouse, you should make sure you get good debt advice as the total amount paid can be massive.

If you are creditworthy enough and the loan amount fits you could consider unsecured loans as secured loans tend to be for larger amounts of money.

Bad Credit FAQs Relating To Homeowner Loans

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

No, not necessarily. The monthly repayment may reflect other costs including fees added onto the loan.

Is a large monthly repayment a serious commitment?

Yes, you should think about the total repayments on the right loan for you. Sometimes if you have a lot of unsecured credit you may be better keeping the original debt. Be cautious of other types of consumer credit.

Who are 1st UK Money?

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. There are many other lenders with 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 loan to value that you currently have. If you have more equity since your last loan application you might be able to get lower interest rates, especially if your current circumstances have improved and you may have acquired other assets.

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

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

Apply for a secured loan to steadily build your pay back history

Generally speaking when you apply for a loan, most people get paperwork ready and work out exactly they can afford per month. You should look carefully about the main risk factors including the maximum aprc – for example for when the discounted rate has timed out. It is very likely a lender will allow you to borrow money your can’t pay back, but, other kinds of credit may let you over extend your self.