Market Insights · July 2026
UK Secured Loan Market Snapshot — July 2026
FCA-authorised broker analysis of UK second charge mortgage rates across the 10-lender specialist panel in July 2026. Lowest achievable APRC 7.0% (Selina Finance 5-year fixed, sub-50% LTV). Prime clean-credit rates held broadly stable through Q2 2026 despite BoE base rate held at 3.75% at the 18 June 2026 MPC meeting. Q2 2026 second charge lending expected to extend Q1's 33% year-on-year growth trajectory when the FLA releases the mid-July figures.
Published 3 July 2026 · Author: Samantha Turner, FCA-authorised specialist lending broker
Rates by credit tier
Initial interest rate, or lenders' published APRC where shown — excludes our broker fee. See methodology for tier definitions.
| Credit tier | Lowest | Median | Highest | Products |
|---|---|---|---|---|
| Clean credit | 7.00% | 8.10% | 10.00% | 8 |
| Minor adverse | 8.55% | 9.00% | 10.70% | 6 |
| Adverse credit | 12.90% | 12.90% | 12.90% | 1 |
Best rate by LTV band
Lowest initial rate available on our panel for each maximum combined LTV. APRC figures in this snapshot are the lenders' own published APRCs, which exclude our broker fee. Including our £2,495 broker fee and the lender fee on £30,000 over 10 years, APRCs are around 2.5–4 points higher — for example 9.7% APRC for Selina Finance's 5-year fix.
| LTV band | Rate | Lender | Product |
|---|---|---|---|
| Up to 50% | 7.0% APRC | Selina Finance | Home Equity Loan 5yr Fixed (6.34% initial rate) |
| Up to 65% | 7.0% APRC | Selina Finance | Home Equity Loan 5yr Fixed (6.39% initial rate) |
| Up to 80% | 7.9% APRC | Masthaven | Optimal Zero 5yr Fixed (7.61% initial rate) |
| Up to 85% | 9.5% APRC | Selina Finance | Home Equity Loan 2yr Fixed (9.09% initial rate) |
| Up to 90% | 10.7% APRC | Central Trust | Plan 5 2yr Fixed (9.96% initial rate) |
| Up to 95% | 12.9% variable | Evolution Money | Plan 8 Variable |
Market context
The Bank of England held base rate at 3.75% at the 18 June 2026 MPC meeting — the second consecutive hold since April 2026. Consensus expectation across UK finance is for one further 25bp cut by year-end contingent on inflation trajectory. Specialist secured loan pricing has been broadly stable through Q2 2026 with lenders repricing at the margins rather than making headline moves.
Q2 2026 Finance & Leasing Association second charge figures release mid-July. Industry consensus expects continuation of Q1 2026's 33% year-on-year growth trajectory (£625m Q1, £228m single-month March — highest since February 2008). The dominant driver remains the ~1.8 million UK homeowners whose 2021 fixed-rate mortgages expire during 2026 — average new 5-year fix pricing sits at roughly 5.7% versus sub-2.5% on the expiring legacy fixes.
The FCA March 2026 second charge sector review continues to influence underwriting cadence. Panel underwriters report longer document conversations on debt consolidation cases — well-packaged broker submissions with clear suitability narratives now process materially faster than direct or partially-completed applications.
Rate movement
Headline prime rates held month-on-month; Selina retains rate leadership at sub-65% LTV with 7.0% APRC. Masthaven strengthened its position on the 80% LTV clean credit segment following July repricing.
Notable events
Interbridge Mortgages continues aggressive high-LTV specialist positioning
Regularly beats Pepper Money on high-LTV second charge cases — competitive pressure at the 85-90% LTV segment where mainstream specialists have historically dominated.
18 June 2026 MPC: base rate held at 3.75%
Second consecutive hold. Panel lender variable-rate products unchanged; fixed-rate repricing expected only after any July inflation-driven policy signal.
Q2 2026 FLA figures due mid-July
Expected to confirm continued year-on-year growth in second charge lending. Q1 was £625m at +33% YoY. Q2 figures will inform whether the mortgage-cliff-driven expansion is sustaining or normalising.
Methodology
- Rate data sourced from live product sheets supplied by panel lenders as at the publication date. Initial rates and APRC shown separately; APRC is the FCA-required comparison figure (interest plus mandatory fees). Excludes broker fees which are disclosed at illustration stage.
- Credit tiers: Clean = no adverse credit markers in the last 24 months. Minor = historical defaults, missed payments, or satisfied CCJs. Adverse = recent CCJs, IVAs, or discharged bankruptcy.
- Median figures are simple averages across all panel products in the tier. Lowest and highest represent the actual edges of the product range at the publication date.
- Excludes bespoke or referral-only products quoted on a case-by-case basis above standard maximum loan sizes.
- Panel at publication date (10 FCA-authorised lenders): Selina Finance, Pepper Money, Masthaven, Central Trust, Norton Finance, Evolution Money, United Trust Bank, Equifinance, Step One Finance, Interbridge Mortgages.
Data released under CC BY 4.0 — citations welcome. Suggested attribution: "Secured Loan Rates UK Market Snapshot, July 2026, Charles Frank Finance Limited."
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