Adverse Credit
Bad Credit
Secured Loans UK
CCJs, defaults, missed payments, and mortgage arrears are all considered by specialist lenders on our panel. Compare live rates now — no hard credit check, no obligation.
Why secured loans work for bad credit
When you have a poor credit history, unsecured borrowing becomes expensive or impossible. But a secured loan changes the equation — because the loan is backed by the equity in your home, lenders take on far less risk.
This means specialist lenders are willing to look beyond your credit score and assess the full picture — your income, your equity, the age and size of your credit issues, and your current ability to repay.
Rates will be higher than for clean credit, but they are still typically far lower than unsecured loans or credit cards for adverse applicants — and you can borrow significantly larger amounts.
Credit issues we can help with:
Missed payments
Missed payments on unsecured credit are considered — the number, recency, and value are assessed individually rather than against a rigid limit
Defaults
Satisfied or unsatisfied defaults considered
CCJs
County Court Judgements considered, especially if satisfied
Mortgage arrears
Up to 8 months in arrears may be considered subject to lender and circumstances — arrears can often be cleared from the loan proceeds on completion
IVA / DMP
Individual Voluntary Arrangements or Debt Management Plans considered
Bankruptcy
Discharged bankruptcy considered from 12 months post-discharge
What rates can I expect?
Rates depend on the severity of your credit issues, your LTV, and the lender. Use the selector on our rate table to see adverse credit rates from our panel.
Minor issues
1–2 missed payments, old defaults
From ~7–9%
initial rate
Moderate adverse
CCJs under £5k, satisfied defaults
From ~9–13%
initial rate
Severe adverse
Recent CCJs, IVA, mortgage arrears
From ~13–18%
initial rate
Rates shown are indicative. Your actual rate depends on your individual circumstances, lender assessment, and market conditions. APRC is variable.
Specialist lenders on our panel
These lenders have specific products designed for applicants with adverse credit histories.
Pepper Money
Specialist adverse credit lender
Accepts: CCJs, defaults, missed payments, mortgage arrears
Masthaven
Specialist adverse credit lender
Accepts: CCJs, defaults, mortgage arrears, discharged bankruptcy
Norton Finance
Adverse credit specialists since 1974
Accepts: CCJs, IVAs, defaults, debt management plans
Spring Finance
Short-term and bridging solutions
Accepts: Recent adverse, complex employment, non-standard properties
Why more people qualify than they think
Your property does the heavy lifting
Even if your credit history isn't perfect, the equity in your home is often enough. Second charge lenders focus on your overall position — not just your credit score.
Older credit issues matter less
The older a credit problem is, the less weight lenders place on it. A CCJ or default from a few years ago is treated very differently to a recent one — and many of our customers are surprised how much their options have improved over time.
Outstanding CCJs? We can still help
Having an unsatisfied CCJ doesn't automatically mean a decline. Several lenders on our panel will consider applications with outstanding CCJs depending on the value, age, and overall application.
Errors on your credit file can be fixed
It's worth checking your credit report with Experian, Equifax, or TransUnion before applying. Mistakes are more common than people realise and correcting them can make a real difference to the rate you're offered.
All income types considered
Employed, self-employed, contract, or complex income — second charge lenders are far more flexible than high street banks when it comes to how they assess affordability.
One call, whole of market
As a specialist FCA-authorised broker we search our entire lender panel on your behalf — including lenders who don't accept direct applications — so you get the best available rate for your circumstances.
Bad credit secured loans explained
What credit profiles do second charge lenders accept?
Second charge lenders operate very differently to high street banks and first charge mortgage lenders. Rather than applying rigid credit scoring, specialist lenders assess each case on its individual merits — looking at the full picture rather than just a number. The following are not automatic declines. They are the everyday profiles our lender panel is specifically designed to work with:
- —County Court Judgements (CCJs) — both satisfied and unsatisfied CCJs are considered. The age, value, and number of CCJs all factor into the assessment. A single satisfied CCJ from a few years ago will have very little impact on your options.
- —Defaults — satisfied and unsatisfied defaults are both acceptable to many lenders on our panel. As with CCJs, the older and lower in value the default, the less impact it has.
- —Missed or late payments — occasional late payments are typically classed as minor adverse and are unlikely to prevent you from obtaining a secured loan.
- —Individual Voluntary Arrangements (IVAs) — active and completed IVAs are considered. Lenders will look at how long you have been in the arrangement and your payment conduct throughout.
- —Debt Management Plans (DMPs) — active and completed DMPs are acceptable to a number of lenders. These are generally viewed less severely than IVAs.
- —Mortgage arrears — a history of mortgage arrears does not automatically rule out a second charge application. Lenders consider the number of months in arrears, how recently they occurred, and your current payment position.
- —Bankruptcy — lending is not available to undischarged bankrupts. Once discharged (which happens automatically after 12 months), most specialist lenders will consider applications, with more options available the longer ago the discharge occurred.
You can check your credit file for free through Experian, Equifax, or TransUnion. Knowing what is on your file before applying means your adviser can match you to the right lender first time — avoiding unnecessary credit searches and maximising your chances of approval.
How adverse credit secured loan rates are calculated
Lenders price risk. With adverse credit, the lender is taking on a higher risk of non-repayment, so they charge a higher interest rate to compensate. However, because the loan is secured against your property, the rates are still far more competitive than unsecured alternatives.
The key factors that determine your rate are:
Severity of credit issues
A single old, satisfied CCJ might add 1–2% to your rate. Multiple recent unsatisfied CCJs with mortgage arrears could add 5–8%.
Loan-to-value ratio
LTV is just as important for adverse credit as clean credit. Below 60% LTV, even adverse applicants can access rates from around 8–9%.
Recency of issues
Credit problems from 3+ years ago are viewed far more leniently than issues from the last 12 months. Time heals credit profiles.
Current payment behaviour
Demonstrating 6–12 months of clean payment history on existing commitments significantly strengthens your application.
According to the FCA's guidance on second charge mortgages, all lenders must carry out a full affordability assessment regardless of credit history. This means your income and outgoings matter just as much as your credit score.
Adverse credit secured loans vs other options
If you have bad credit and need to borrow, your options include:
| Option | Typical APR | Max amount | Property risk? |
|---|---|---|---|
| Secured loan | 8% – 18% | Up to £500,000 | Yes |
| Bad credit personal loan | 25% – 70% | Up to £7,500 | No |
| Guarantor loan | 20% – 50% | Up to £15,000 | No |
| Credit card (bad credit) | 30% – 60% | Up to £1,500 | No |
| Credit union loan | 3% – 42% | Varies | No |
A secured loan offers by far the lowest rates and highest borrowing limits for adverse credit applicants, but the critical trade-off is that your property is at risk if you cannot keep up repayments. If you are struggling with debt, free advice is available from Citizens Advice and MoneyHelper.
Common questions
Can I get a secured loan with bad credit?
Yes. Because the loan is secured against your property, lenders are more willing to consider poor credit histories than with unsecured loans. Your equity and income are often more important than your credit score. Specialist lenders on our panel — including Pepper Money and Masthaven — consider CCJs, defaults, and missed payments.
Will a CCJ stop me getting a secured loan?
Not necessarily. Many lenders will consider CCJs, particularly if they are satisfied, older than 12 months, or below a certain value. The key factors are the size and age of the CCJ, your current equity, and your ability to afford the repayments.
What interest rate will I pay with bad credit?
Rates for adverse credit secured loans typically range from 8% to 18% depending on the severity of your credit issues, LTV, loan amount, and term. Still usually far lower than unsecured personal loans or credit cards for people with bad credit, which can exceed 40% APR.
How much can I borrow with bad credit?
Most specialist lenders offer between £5,000 and £500,000 for adverse credit applicants. Maximum combined LTV is typically 70–80% for adverse credit, compared to 85% for clean credit.
Will comparing rates affect my credit score?
No. Comparing rates here uses a soft search only — it does not appear on your credit file or affect your score. A hard search only happens when you formally apply with a lender.
What counts as bad credit for a secured loan?
Lenders consider missed payments, defaults, CCJs, IVAs, debt management plans, mortgage arrears, and discharged bankruptcy. The impact on your available rates depends on the severity and age of the issue.
Get a free adverse credit quote
Our advisers specialise in finding secured loan solutions for homeowners with poor credit. No hard credit check to compare. No obligation to proceed.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.