Clearly Loans Secured Loans: Criteria, Rates and How to Apply

Clearly Loans and the OSB Group context

Clearly Loans is not a standalone brand but a specialist lending badge within OSB Group. OSB Group plc is a FTSE 250 UK challenger bank specialising in buy-to-let, second charge, commercial and semi-commercial mortgages. Within the group, Precise Mortgages handles first charge specialist lending, Kent Reliance serves savers, InterBay Commercial focuses on semi-commercial and BTL second charges, and Clearly Loans sits in the residential second charge near-prime space.

This group structure matters for borrowers. It means Clearly Loans has institutional funding, strong capital and a stable product range. It also means it can afford to price tightly on near-prime cases because it is part of a regulated bank rather than a stand-alone specialist. The flip side is a slightly more corporate approach to underwriting than you might find at an owner-managed specialist.

As an FCA-authorised lender within a PRA-regulated banking group, Clearly Loans is subject to the full prudential and conduct framework. That means MCOB second charge rules, Consumer Duty outcomes, and FOS access for complaints.

Eligibility criteria in 2025

Clearly Loans’ criteria are broader than prime but tighter than heavy adverse specialists like Central Trust or Evolution Money. Typical 2025 requirements include:

• Age: 21 at start, up to 80 at end of term on retirement-friendly plans.
• Residency: UK resident, 3 years address history minimum.
• Property: standard construction houses and flats; ex-local authority accepted; non-standard referable.
• CLTV: up to 80% combined on the strongest plans; 75% more common.
• Loan size: £10,000 to £250,000.
• Term: 3 to 30 years.
• Income: employed, self-employed (1 year minimum), retired, contract and complex income.
• Credit: minor CCJs, defaults and historic DMPs considered; clean last-12-months preferred.

For cases with recent missed payments or active DMPs, Clearly Loans is usually not the right match — a broker will redirect to Pepper Money, Evolution or Central Trust. For clean-credit self-employed applicants wanting competitive second charge pricing, Clearly Loans is often market-leading.

Rates, fees and worked examples

Clearly Loans pricing in 2025 runs from around 8.9% APRC at the cleanest near-prime end to approximately 14% APRC for moderate adverse. Product fees are typically 2% to 4% and can be added to the loan. Here are three scenarios on a £400,000 property with a £200,000 first charge:

Against a prime lender like Shawbrook, Clearly Loans might be 150 to 200 basis points more expensive; against a heavy adverse lender like Evolution or Central Trust, it will typically save you 300 to 500 basis points if your credit qualifies. This is why lender selection is so important on a second charge — a broker comparing five lenders may save you tens of thousands over a 15-year term.

Application process and timescales

Because Clearly Loans is broker-only, you apply through an FCA-authorised intermediary. A typical journey takes 3 to 6 weeks:

1. Fact find and documents: payslips, SA302s, 3 months of bank statements, credit report, property details and ID.
2. Soft-footprint DIP: the broker runs your case across the panel including Clearly Loans and confirms the best combined rate and fees.
3. Full application: hard credit search and underwriting begin. Clearly Loans is generally quick at underwriting for clean cases.
4. Valuation: typically AVM or desktop; full physical valuation only for higher LTV or unusual properties.
5. First charge consent: Clearly Loans obtains consent from your first charge lender, which can take 1 to 3 weeks depending on the primary lender.
6. Binding offer and reflection period: ESIS issued; 7-day reflection under MCOB.
7. Completion: solicitors register the charge at HM Land Registry and funds are released.

Because Clearly Loans is part of OSB Group, its systems are typically slick and document handling efficient. Delays are usually caused by first charge consent rather than Clearly Loans itself.

How Clearly Loans compares with its competitors

The direct competitor set for Clearly Loans includes:

• Pepper Money: similar near-prime tier, often slightly cheaper for clean profiles, more flexible on minor adverse.
• Precise Mortgages: same OSB Group sibling, slightly different plans, some overlap.
• Norton Home Loans: near-prime specialist, strong on complex income.
• Shawbrook: prime tier, cheaper for clean credit but tighter criteria.
• United Trust Bank: prime to near-prime, strong on self-employed.
• Equifinance: flexible on retired applicants and varied property types.
• Together Money: 80% CLTV and wider property acceptance but higher pricing.

A good broker will compare at least 4 to 6 of these on your case, documenting the recommendation. Under Consumer Duty, the lender chosen must genuinely be appropriate for your circumstances — not just the first one to return a DIP. Always ask to see the comparison, including the combined APRC, fees and total amount payable over the chosen term.

FCA, FOS and FSCS protections

Clearly Loans, as a lender within OSB Group, benefits from the strongest regulatory framework in UK lending:

• FCA authorisation: full FCA permissions for regulated second charge mortgage lending under MCOB.
• PRA supervision: OSB Group is a PRA-regulated bank, meaning prudential oversight of capital and liquidity.
• Consumer Duty: full compliance with the July 2023 rules on product, price, understanding and support outcomes.
• ESIS disclosure: you receive a European Standardised Information Sheet with every binding offer.
• 7-day reflection: statutory waiting period before the offer binds you.
• FOS access: complaints can be escalated to the Financial Ombudsman, currently awarding up to £430,000.
• FSCS: OSB Group’s deposits are covered under FSCS to £85,000 per person per institution; this does not apply to the loan you take, but it does apply to any savings you hold with Kent Reliance.
• Forbearance: MCOB 13 arrears rules apply in full.

Tax, debt and consolidation implications

A Clearly Loans secured loan against your own home is not tax-deductible for ordinary domestic use. If you are drawing funds to invest in a business asset, buy-to-let property or other income-generating activity, proportionate interest relief may apply — this is complex and HMRC-specific, so a qualified tax adviser should be consulted.

For debt consolidation, the key consideration is the conversion of unsecured to secured risk. A typical consolidation case might involve £35,000 of unsecured debt at an average 20% APR, reducing to a secured 10% APRC over 15 years. The headline monthly saving can be significant — often cutting payments by 40% to 60% — but the total interest over a longer term can still rise. Clearly Loans’ underwriting will model this and, under Consumer Duty, your broker must document why the consolidation delivers a good outcome rather than simply a lower monthly.

Affordability is assessed to MCOB 11 standards with a stress test, and the lender expects clean conduct on your existing mortgage and current account. Recent credit enquiries, gambling transactions and payment return items on bank statements will weigh against you.

Common pitfalls and how to avoid them

Clearly Loans cases typically fail for six reasons:

1. Credit surprises at hard search: a CCJ or default not disclosed at DIP stage destroys the case. Always pull a full tri-bureau report before applying.
2. Recent unsecured borrowing: taking on a new credit card or loan within 90 days triggers affordability concerns.
3. Property type issues: cladding, short lease, ex-council high-rise or non-standard construction need pre-qualification.
4. First charge consent friction: some primary lenders delay consent by 2 to 4 weeks; build this into your timeline.
5. Income documentation: self-employed applicants need their SA302, tax year overview and latest trading figures in a presentation-ready format.
6. Ownership mismatches: all legal title holders must either be on the application or sign a consent deed.

A good broker’s fact find will capture these issues up front, saving an aborted application and preserving your credit file from unnecessary hard searches. Expect your broker to spend 45 minutes to an hour on the initial call.