Market Insights · June 2026
UK Secured Loan Market Snapshot — June 2026
FCA-authorised broker analysis of UK second charge mortgage rates across 6 specialist panel lenders. Selina Finance leads on rate at 6.34% APRC for sub-50% LTV clean credit; Pepper Money offers 6.99% APR up to 85% LTV. Adverse credit rates range to 12.90% (Evolution Money, 95% LTV). Market activity strong following Q1 2026 FLA data showing second charge volumes up 33% year-on-year.
Published 7 June 2026 · Author: Samantha Turner, FCA-authorised specialist lending broker
Rates by credit tier
Initial rate (APR / APRC). See methodology for tier definitions.
| Credit tier | Lowest | Median | Highest | Products |
|---|---|---|---|---|
| Clean credit | 6.34% | 7.91% | 9.96% | 8 |
| Minor adverse | 8.51% | 8.85% | 9.17% | 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.
| LTV band | Rate | Lender | Product |
|---|---|---|---|
| Up to 50% | 6.34% APRC | Selina Finance | Home Equity Loan 5yr Fixed |
| Up to 65% | 6.39% APRC | Selina Finance | Home Equity Loan 5yr Fixed |
| Up to 80% | 6.99% APR | Pepper Money | Second Charge 5yr Fixed |
| Up to 85% | 6.99% APR | Pepper Money | Second Charge 5yr Fixed |
| Up to 90% | 9.96% APR | Central Trust | Plan 5 2yr Fixed |
| Up to 95% | 12.90% variable | Evolution Money | Plan 8 Variable |
Market context
The Bank of England held base rate at 3.75% at the April 2026 MPC meeting, with the next decision due 18 June 2026. Specialist secured loan pricing has been relatively stable across Q2 2026, though lenders continue to reprice tiers in response to volume.
The Finance & Leasing Association's Q1 2026 release recorded £625m of new second charge lending across 11,489 agreements — up 33% year-on-year. March 2026 was the strongest single month at £228m, the highest since February 2008. Industry consensus expects Q2 2026 to extend the growth trajectory as ~1.8m UK fixed-rate mortgages expiring in 2026 push more homeowners toward equity-release alternatives that preserve sub-2.5% legacy fixes.
The FCA's March 2026 review of the second charge sector emphasised suitability and affordability scrutiny, particularly on debt consolidation cases. Underwriters across the panel have been asking more probing questions about the rationale for borrowing — well-packaged broker cases are being prioritised in processing queues.
Rate movement
Headline prime rates flat month-on-month; minor and adverse tiers unchanged. Selina Finance retains rate leadership at sub-65% LTV; Pepper Money the strongest blend of rate and LTV reach.
Notable events
Admiral Money active market entrant at higher loan sizes
Increased competition expected at the £100,000+ clean credit segment over H2 2026.
Selina HELOC product relaunch
Flexible drawdown structure being trialled with a subset of brokers — limited general availability so far.
FCA suitability spotlight on consolidation cases
Documented affordability narratives now standard across panel; expect 1-2 day extension on average case timing.
Methodology
- Rate data sourced from live product sheets supplied by panel lenders as at the publication date. Initial rates shown; the true cost of borrowing includes APRC plus arrangement fees and broker fees disclosed at illustration.
- 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.
- Excludes bespoke or referral-only products quoted on a case-by-case basis above standard maximum loan sizes.
- Panel as at publication date: Selina Finance, Pepper Money, Spring Finance, Central Trust, Norton Finance, Evolution Money. Six additional panel lenders (West One, Equifinance, UTB, Together, Mercantile Trust, Step One Finance) covered in the August 2026 update once full product-sheet integration is complete.
Data released under CC BY 4.0 — citations welcome. Suggested attribution: "Secured Loan Rates UK Market Snapshot, June 2026, Charles Frank Finance Limited."
Apply these rates to your case
Get a personalised quote across our full panel — the rates above are panel medians; your actual rate reflects your specific LTV, credit profile, and loan size.