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Best Secured Loans for Bad Credit 2026

A secured loan can be easier to get than a remortgage if you have bad credit, because the loan is secured against your home. This guide covers the best secured loans for bad credit in 2026, the lenders, rates, and how to qualify.

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Quick Answer: Best Secured Loans for Bad Credit in 2026

Specialist lenders — Pepper Money, Together, Norton Home Loans, Optimum, United Trust Bank and Evolution — offer secured loans to borrowers with CCJs, defaults, arrears and low scores, pricing for risk rather than declining. Rates typically run from around 9% to 15%+ depending on severity and LTV, improving as adverse credit ages and is satisfied. Best approached through a specialist secured-loan broker who knows each lender's exact credit thresholds. Keeping combined LTV low secures the best available rate.

Rates last reviewed June 2026. Figures shown are indicative market ranges to help you compare — not live quotes or personalised offers. Mortgage rates change daily and depend on your circumstances, the lender's criteria and the Bank of England base rate. Check live rates for your profile →

Why Secured Loans Suit Bad Credit

A secured loan is often the better route when credit is impaired:

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"Our fixed rate was ending in a month and I was panicking about going onto the SVR. Managed to get everything sorted really quickly and we're now on a much better rate. Saving us about £200 a month."
Janet from Exeter

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Janet, Exeter
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"Was a bit nervous about switching as I'd been with the same lender for years. Turns out I was massively overpaying — got a much better deal and the whole process was far easier than I expected."
Lucy from Tamworth

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Lucy, Tamworth
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"After having to pay a ridiculous amount due to the interest rate hike, we have now got a more suitable monthly payment, consolidated a loan and have money left for hopefully a loft conversion."

How Adverse Credit Affects Your Rate

Credit situationTypical rate impact
Old, satisfied markers (3+ yrs)Closest to standard secured rates
Recent satisfied CCJs/defaultsModerate premium
Unsatisfied markers / recent arrearsHigher premium, fewer lenders
Active DMP / very recent adverseHighest rates, specialist lenders only

The same levers that help with an adverse-credit remortgage apply: the older and more 'satisfied' your markers, and the lower your combined LTV, the closer to standard secured-loan rates you'll get.

How to Get Approved and Cut Your Rate

To improve your chances and pricing:

Best Alternatives and Related Options

Related routes for impaired credit:

Important: Your home may be repossessed if you do not keep up repayments on your mortgage. There will be a fee for mortgage advice. The actual rate available will depend on your circumstances. Think carefully before securing other debts against your home.

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Frequently Asked Questions

Yes — secured loans are often more accessible than remortgages for bad credit, because the loan is secured against your home, reducing the lender's risk. Specialist lenders like Pepper Money, Together, Norton and United Trust Bank accept CCJs, defaults, arrears and low scores, pricing for the risk rather than declining. A specialist secured-loan broker matches your credit profile to the lender offering the best available rate.

Bad-credit secured loan rates typically run from around 9% to 15%+, depending on the severity and age of your adverse credit and your combined loan-to-value. Old, satisfied markers attract rates closest to standard; recent unsatisfied markers or active arrears sit at the higher end. The rate improves as markers age and are satisfied, and as your combined LTV falls. A broker finds the lowest available.

Often yes — because a secured loan sits as a charge against your property, lenders accept credit profiles that mainstream remortgage lenders reject, and you avoid re-applying for your whole mortgage. This is especially useful if adverse credit appeared after you took your current mortgage, as a secured loan leaves that deal (and its rate) untouched. Specialist second-charge lenders underwrite each case individually.

No — a secured loan (second charge) sits behind your existing mortgage without replacing it, so your main mortgage, its rate and its terms are unaffected. You simply add a second loan secured against your equity. This is a key advantage with bad credit: you keep your current mortgage and avoid a fresh credit check on the whole balance, while still raising the funds you need.

Yes — debt consolidation is one of the most common uses of a bad-credit secured loan. You borrow against your home's equity to clear high-interest cards and loans, replacing several payments with one. Because the secured loan rate is usually well below credit-card rates, monthly payments often fall. Be mindful that you're securing previously unsecured debt against your home, and consider overpaying to clear it faster.

Satisfy any outstanding markers where you can (paid markers open more lenders and lower rates), keep your combined loan-to-value low by borrowing only what you need, and demonstrate recent stability with no new missed payments. Waiting for markers to age past three years also helps. A specialist broker then matches your improved profile to the lender with the best rate, placing you first time.

Related Topics

Current Remortgage Rates

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