Lender Profile
Step One Finance Secured Loans
UK specialist adverse-credit secured lender — accepts significant CCJs, defaults, IVAs, and active arrears where mainstream and minor-adverse specialists have declined.
About Step One Finance
Step One Finance is a UK specialist secured loan lender focused on the significant adverse credit segment of the market. Their positioning is closely comparable to Evolution Money — both are the go-to placements for borrowers whose credit history sits outside every other panel specialist's underwriting tolerance. Where Norton, Pepper, and Masthaven price adverse credit case-by-case within relatively conservative appetite windows, Step One's underwriting explicitly opens the door to recent CCJs, defaults, IVAs, and active arrears.
Step One's rates reflect the higher-risk borrower segment, typically starting around 11-12% variable APR. For borrowers with significant adverse credit, the alternative is usually unsecured credit at 25-40% APR, credit cards at 30%+ APR, or no funding at all. In that context Step One's headline rate is materially cheaper than the actual borrowing alternatives — and their willingness to lend to cases declined by both mainstream lenders and minor-adverse specialists makes them the placement of last resort in a good sense.
Maximum loan sizes are typically up to £50,000 — deliberately calibrated for debt consolidation, urgent capital needs, and emergency funding rather than large home improvement projects. This matches the typical adverse-credit case profile: consolidation of problematic unsecured debt, resolution of a specific pressing financial issue, or capital raising where speed and acceptance matter more than absolute rate.
Product features that distinguish Step One from typical variable-rate lending: no arrangement fee (or very low fees), up to 85% combined LTV, and typically no early repayment charges. The combination of adverse credit acceptance, no arrangement fee, and no ERC gives borrowers the flexibility to refinance to mainstream products once credit position improves — a genuinely borrower-friendly structure for a segment where product terms often work against the borrower. Underwriting is human-led and case-by-case.
Product range: Variable-rate secured loan for borrowers with significant adverse credit. £5,000 to £50,000, up to 85% combined LTV, typically no arrangement fee, typically no early repayment charges. Accepts recent CCJs, defaults, IVAs, active arrears where mainstream lenders and minor-adverse specialists decline.
Best for
- Borrowers with recent CCJs, defaults, IVAs, or active arrears
- Cases declined by both mainstream lenders and minor-adverse specialist lenders
- Borrowers needing urgent capital for debt consolidation of problematic unsecured debt
- Higher-LTV adverse cases up to 85% combined LTV
- Borrowers who value no arrangement fee for cost predictability
- Cases where no ERC lets borrower refinance freely if credit position improves
- Smaller loans up to £50,000 where absolute rate cost stays manageable
- Applicants specifically seeking a lender that accepts active arrears (most panel lenders exclude)
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 2–4 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 by mainstream and minor-adverse specialists
- +Typically no arrangement fee (or very low) — total cost more predictable than fee-charging alternatives
- +Up to 85% combined LTV — useful for higher-LTV adverse cases
- +No early repayment charges — repay any time without penalty, refinance freely if credit improves
- +Accepts active arrears — one of the few panel lenders willing to review these cases
- +Rates materially cheaper than unsecured alternatives (25-40% APR credit cards, unsecured loans)
- +Human-led case-by-case underwriting appropriate for complex adverse credit histories
Cons
- −Variable rate at 11-13% APR — significantly higher than mainstream products (materially cheaper than unsecured alternatives)
- −Maximum loan £50,000 — not suitable for larger borrowing needs (Pepper, Norton go higher on minor adverse; heavy adverse capped at £50,000 across the specialist adverse segment)
- −Variable rate exposes borrowers to interest rate movement over the loan term
- −Higher-rate borrowing — should be considered alongside free debt advice before committing
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, current affordability, and cause. Step One and Evolution Money are the two panel lenders willing to review cases with active arrears — most other specialists exclude these entirely at underwriting. For very heavy adverse credit at higher LTV, Evolution Money's 95% LTV cap sits above Step One's 85%.
How does Step One Finance compare to Evolution Money for adverse credit?
Both are the go-to placements for significant adverse credit on our panel. Evolution's Plan 8 sits at 12.90% variable APR with 95% combined LTV — the highest LTV cap on the panel — and no arrangement fee. Step One typically operates at 11-13% variable with 85% LTV cap and no arrangement fee. Both have no ERCs. Evolution wins on LTV reach (95% vs 85%) for higher-LTV cases; Step One may fit better where the case profile matches their specific underwriting preferences and rate can come in slightly lower. Your adviser will identify which lender's criteria fit your case best before submission.
Should I consider free debt advice before taking a Step One loan?
Yes — always worth considering. Free regulated debt advice is available from StepChange (stepchange.org), Citizens Advice, National Debtline (nationaldebtline.org), and MoneyHelper (moneyhelper.org.uk). These services can confirm whether secured borrowing is genuinely the right route or whether a debt management plan, IVA, or other option would work better. Step One is a legitimate solution for the right borrower — but not the right first port of call for every adverse credit case.
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.