Secured Loans

Debt Consolidation
Loans UK

Roll your credit cards, personal loans, and car finance into a single secured loan — one payment, one lender, and typically a significantly lower interest rate. Compare live rates from UK lenders now.

FCA-authorised brokerNo hard credit check to compareAdverse credit considered

What is a debt consolidation loan?

A debt consolidation loan combines multiple debts — credit cards, personal loans, store cards, car finance, overdrafts — into a single new loan with one monthly payment and one interest rate.

A secured debt consolidation loan uses the equity in your home as security. Because the lender has that security, they can offer much lower interest rates than unsecured personal loans or credit cards — often 7–12% compared to 20–30% on credit cards.

This makes a secured consolidation loan particularly effective if you have significant high-interest credit card or personal loan debt and sufficient equity in your property.

Typical example

Barclaycard£8,000 at 22% APR = £220/mo
Personal loan£12,000 at 15% APR = £280/mo
Car finance£6,000 at 18% APR = £160/mo
Total current payments£660/mo
Secured loan at 8.5% over 10 yrs£325/mo

Estimated monthly saving

£335/mo

Illustrative example only. Your actual saving will depend on your circumstances and the rate you qualify for.

How it works

Use our free debt consolidation calculator — no credit check, no obligation.

1

Add your debts

Enter each debt — balance and current monthly payment. Credit cards, loans, car finance, overdrafts.

2

See your saving

We calculate what a single secured loan would cost and show your estimated monthly saving instantly.

3

Compare lenders

Your debt total loads into the rate table. Compare rates from our specialist UK lender panel side by side.

4

Apply in 60 seconds

Click Apply and an FCA-authorised adviser calls you to confirm your rate. No hard credit check at this stage.

Pros and cons

Benefits

Lower interest rate

Secured loans typically charge 6–12% vs 20–30% on credit cards — significantly reducing the interest you pay.

One monthly payment

Replace 4, 5 or more minimum payments with a single, predictable direct debit.

Fixed end date

Unlike revolving credit, a secured loan has a clear term — you know exactly when you will be debt-free.

Improves cash flow

Lower monthly outgoings free up income for savings, emergencies, or other priorities.

Risks to consider

Your home is at risk

Unsecured debts become secured against your property. Miss payments and the lender can repossess your home.

May cost more overall

A longer term means more total interest paid, even at a lower rate. Run the numbers before committing.

Fees apply

Arrangement fees (typically £495–£1,995) and valuation fees are common. These are disclosed upfront.

Doesn't fix the habit

Consolidating won't help if you run up the credit cards again. Consider closing accounts after consolidating.

Who qualifies?

To get a secured debt consolidation loan you must be a UK homeowner aged 18 or over with sufficient equity in your property. Most lenders require:

£5,000

Minimum loan

£500,000

Maximum loan

Up to 85%

Max combined LTV

Clean to adverse

Credit profile

Lenders consider your income, employment status, credit history, property value, and existing mortgage balance. Even with CCJs or defaults, specialist lenders on our panel — including Pepper Money and Together — may still be able to help.

Common questions

What is a debt consolidation loan?

A debt consolidation loan combines multiple debts — credit cards, personal loans, store cards, car finance — into a single new loan with one monthly payment. A secured version uses your property as security, which typically unlocks lower rates than unsecured alternatives.

How much can I save by consolidating?

Savings depend on your current rates versus the secured loan rate you qualify for. Credit card debt at 20–30% APR consolidated into a secured loan at 7–10% can reduce monthly outgoings significantly. Use our calculator on the homepage to see your personal saving.

Is it a good idea?

It can be. You typically pay less interest and simplify multiple payments into one. But you are converting unsecured debt into debt secured against your home — if you miss payments, your home may be at risk. Always get independent advice if you are unsure.

Can I consolidate with bad credit?

Yes. Lenders including Pepper Money and Together specialise in applicants with CCJs, defaults, or missed payments. Rates will be higher than clean credit, but secured loans are often available where unsecured options are not.

What debts can I consolidate?

Credit cards, personal loans, store cards, overdrafts, car finance, and payday loans. You cannot consolidate an existing mortgage into a second charge loan — though remortgaging may be an option.

How much equity do I need?

Most lenders cap combined LTV at 80–85%. On a £300,000 property with a £150,000 mortgage, you may be able to borrow up to £105,000 (85% LTV) for debt consolidation.

See how much you could save

Add your debts to our free calculator and compare secured consolidation rates from UK lenders in minutes. No credit check. No obligation.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS.