Debt Consolidation
Loans UK 2026

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.

UK secured debt consolidation loan rates in June 2026 typically start from around 6% APRC for borrowers with clean credit at lower loan-to-values, rising to 12% or above for those with adverse credit history or higher LTVs. By comparison, unsecured debt consolidation loans typically range from 8% to 30%+ APR depending on your credit profile. The Bank of England base rate is currently 3.75%, held at the April 2026 MPC meeting, with the next rate decision due on 18 June 2026. The rate you are offered will depend on your individual circumstances, credit profile, available equity, and lender criteria — speak to us for a personalised quote.

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.

Most UK debt consolidation loan lenders require: (1) UK residential property ownership with sufficient equity (combined LTV under 95%); (2) verifiable income that covers the new monthly payment alongside your existing commitments; (3) a credit profile that fits the lender's criteria — clean credit unlocks the lowest rates, but specialist lenders can consider CCJs, defaults, and historic bankruptcy depending on dates and severity. Under FCA regulations, all lenders must complete an affordability assessment regardless of credit history.

UK secured debt consolidation loans typically range from £5,000 to £500,000. The exact amount depends on your available property equity, combined LTV cap (typically 75–85% across the panel depending on credit profile and lender), affordability assessment, and the lender's product criteria. On a £300,000 property with a £150,000 first charge mortgage, you could potentially borrow up to £105,000 at 85% combined LTV, though most lenders will lend the lower of that figure or what your affordability supports, and lower LTV caps apply for adverse credit. All figures are illustrative and subject to individual assessment.

Yes — UK debt consolidation loans secured against residential property are regulated by the Financial Conduct Authority. Both the broker and the lender must hold FCA authorisation. Charles Frank Finance Limited operates under FCA FRN 624668. The FCA's March 2026 review of the second charge sector emphasised affordability and suitability scrutiny on consolidation cases — underwriters are now asking probing questions about whether borrowing genuinely resolves the underlying issue.

It depends on your current first charge mortgage. If you have a cheap legacy fix — the average 5-year fix taken out in 2021 was around 2.6%, and nearly a million of those deals expire in 2026 — a secured loan will typically beat remortgaging because it preserves your existing first charge rate. Average new 5-year fixes are currently around 5.6%; a separate second charge on the additional borrowing keeps your existing rate intact rather than rolling your entire mortgage onto a higher rate.

It can be. Rolling multiple high-interest debts into a single lower-rate payment can reduce your monthly outgoings and simplify your finances. However, you are converting unsecured debt into debt secured against your home — if you miss payments, your home may be at risk. Before committing, consider whether free independent debt advice might be more appropriate, particularly if the underlying cause of the debt hasn't been resolved. StepChange, Citizens Advice, and MoneyHelper all offer free, impartial guidance with no obligation.

Yes. A number of specialist second charge lenders specifically cater for applicants with adverse credit history — including CCJs, defaults, missed payments, IVAs, and discharged bankruptcy from as little as 12 months ago. Rates will be higher than for clean credit borrowers, and the amount you can borrow will depend on the severity and age of the adverse, your available equity, and affordability. A secured loan is often available where unsecured options have been declined entirely. We'll assess your full credit profile and match you to the most appropriate lender from our panel.

A secured consolidation loan can be used to pay off most forms of unsecured borrowing, including credit cards, personal loans, store cards, overdrafts, car finance, payday loans, buy now pay later balances, and catalogue debt. Beyond straightforward debt consolidation, a second charge loan can also settle HMRC tax bills (self-assessment arrears, VAT, corporation tax), school or university fees, business loans or director's guarantees, legal costs or divorce settlements, and family loans. You cannot consolidate your existing first charge mortgage into a second charge loan, though remortgaging may be worth exploring if that is your goal. Every use case is assessed individually — some lenders are more comfortable with certain purposes than others, and we'll match your situation to the right lender on the panel.

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. Some lenders extend to 90-95% combined LTV at higher rates for clean credit or adverse credit cases respectively.