Lender Profile
Step One Finance Secured Loans
UK specialist lender for borrowers with significant adverse credit history.
About Step One Finance
Step One Finance is a UK specialist secured loan lender focused on the adverse credit segment of the market — similar positioning to Evolution Money. Their product accepts borrowers with recent CCJs, defaults, IVAs, and active arrears where other specialists have declined.
Step One's rates reflect the higher-risk borrower segment, typically starting around 11–12% variable. For borrowers with significant adverse credit, the alternative is usually unsecured credit at 30%+ APR or no funding at all — making Step One one of a small number of viable options.
Maximum loan sizes are typically up to £50,000 — designed for debt consolidation, urgent capital needs, and emergency funding rather than large home improvement projects. Most cases complete in 3–4 weeks.
Product range: Variable-rate secured loan for borrowers with significant adverse credit. Smaller loan sizes, higher LTV cap. No early repayment charges.
Best for
- Borrowers with recent CCJs, defaults, or active arrears
- Cases declined by mainstream and minor-adverse specialist lenders
- Borrowers needing urgent capital for debt consolidation
- Smaller loans up to £50,000 where the rate gap matters less in absolute terms
Key facts
- Established
- UK specialist adverse-credit lender
- Parent Company
- Step One Finance Ltd (FCA-authorised)
- Min Loan
- £5,000
- Max Loan
- £50,000
- Max Term
- 20 years
- Max Ltv
- 85% combined
- Fee
- Typically nil arrangement fee or low
- Credit Tier
- Adverse credit accepted
- Rate Structure
- Variable rate (typically 11–13% currently)
- Completion
- Typically 3–4 weeks
- Property Eligibility
- Standard UK residential property in the applicant's name. Combined LTV up to 85%. Adverse credit history accepted including recent CCJs and defaults.
Pros
- +Accepts borrowers with significant adverse credit declined elsewhere
- +Typically low or no arrangement fee
- +Up to 85% combined LTV — useful for higher-LTV adverse cases
- +No early repayment charges on most products
Cons
- −Variable rate at 11–13% — significantly higher than mainstream products
- −Maximum loan £50,000 — not suitable for larger borrowing needs
- −Variable rate exposes borrowers to rate movement over the term
Step One Finance FAQs
What rates does Step One Finance offer on secured loans?
Step One Finance secured loan rates typically start around 11.0% variable APR for borrowers with significant adverse credit, with the exact rate reflecting the severity of credit issues, LTV, and loan amount. For context, the alternative for borrowers in this segment is often unsecured credit at 30%+ APR — making Step One materially cheaper despite the higher headline rate vs mainstream secured loans. Rates are subject to change.
What is a representative example for a Step One Finance secured loan?
Representative example for a £20,000 secured loan over 120 months at 11.50% APR variable: monthly repayment £281.13, total loan repayments £33,735.60, Step One arrangement fee £0, Charles Frank Finance broker fee £2,000 (10% of net loan amount as the loan is under £25,000). Total amount payable £35,735.60. Total charge for credit (interest plus fees) £15,735.60. Representative APRC 13.4%. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
What property eligibility does Step One Finance require?
Standard UK residential property in the applicant's name with a current first charge mortgage. Combined LTV can extend up to 85% — useful for higher-LTV adverse credit cases. Adverse credit history accepted including recent CCJs, defaults, and active arrears. A property valuation is required.
Will Step One Finance accept me with active arrears or a recent CCJ?
Yes — Step One specifically supports borrowers with significant adverse credit including active arrears and recent CCJs. They underwrite case-by-case considering severity, recency, and current affordability. For very heavy adverse credit, Evolution Money is the closest panel alternative.
Apply for a Step One Finance secured loan
We'll match your case against Step One Finance's criteria first — and the rest of our panel — to find the cheapest fit.