Loan structure
Secured Loan
A secured loan is borrowing where the loan is secured against an asset you own — usually your home. UK secured loans are regulated as second charge mortgages by the FCA.
In the UK, the term secured loan almost always refers to a homeowner loan or second charge mortgage — borrowing secured against residential property. The product sits behind your existing mortgage as a separate loan, repaid in monthly instalments over a fixed term.
Loan amounts range from £5,000 to £500,000. Terms range from 1 to 30 years. Rates in 2026 typically run from 5.9% APR (clean credit, low LTV) to 14.9% APR (adverse credit). All cheaper than equivalent unsecured borrowing because the lender has security.
The trade-off is risk. An unsecured loan that goes wrong damages your credit; a secured loan that goes wrong can ultimately end in losing your home. Take the affordability assessment seriously and only commit to monthly payments you're confident of meeting.