A new lender entering the market in July 2026 will offer secured loans for bad credit. The lender is available to Jubilee 2000, but not on the main shopping comparison website.
Below are the key features:
- 7.91% Capped interest rate
- For a homeowner with current mortgage payments
- Flexible repayment schedule
- Free home valuation
- No broker fees
- Open-minded view of your credit rating
- A decision in principle based on a soft search with no impact on your credit rating
- Ideal for debt consolidation for your credit cards, personal loans, store cards and car finance
- Up to 90% loan-to-value
- No ERC (early repayment charges)
- No lender arrangement fees
- Flexible repayment periods
- No upper age limit
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Can I get a secured loan with bad credit?
Yes. UK homeowners with a history of credit problems can still be considered for a secured loan, especially if there is sufficient property equity and the new payment is affordable. A direct lender secured loan for bad credit can be useful when you want a simple application, no broker fee, and a soft-search decision in principle.
The lender looks at more than the credit score. Property value, current mortgage balance, income, loan-to-value, and the debts being repaid all matter. For a plain explanation of the borrowing structure, see second charge homeowner loans.
A soft search allows the lender to make an early decision without leaving a visible application mark on your credit file. If speed matters, it is worth reading about a secured loan decision without a hard search.
Why homeowners use these loans for debt consolidation
Many people use this type of borrowing to consolidate several repayments into a single monthly payment. A credit card debt consolidation loan can be especially useful when card interest rates are much higher than the secured-loan rate.
Debt consolidation can also help when personal loans, store cards, car finance, and card balances are all being paid on different dates. If you want the broader picture, secured debt consolidation explained sets out how one loan can replace several separate repayments.
The Bank of England Bank Rate was 3.75% in July 2026. Some secured-loan pricing can start from around two percentage points above Bank Rate, while higher loan-to-value borrowing or previous credit problems can move the rate higher.
For people comparing the numbers, a capped-rate debt consolidation loan may feel clearer than a product where the rate can move freely.
July 2026 homeowner loan rate bands
| Loan band | Typical capped rate | Possible overall LTV |
|---|---|---|
| £10,000 to £25,000 | 6.18% to 7.14% | Up to 75% |
| £25,001 to £50,000 | 7.18% to 7.89% | Up to 85% |
| £50,001 to £100,000 | 7.91% to 8.12% | Up to 90% |
Someone clearing a smaller balance may want to look at a £10,000 loan for credit cards. A homeowner with larger commitments might compare a £25,000 secured homeowner loan before applying.
Where the figures are much higher, a large debt consolidation loan may be more suitable than managing several expensive balances separately.
The most useful starting point is often a secured debt consolidation calculator, because it lets you compare the possible monthly payment before you commit to anything.
How the application normally works
The first step is a short online application. The lender then checks the information, conducts a soft search, and uses an automated valuation where possible. The secured loan application timescale is often shorter once your mortgage balance, proof of income, and debt figures are ready.
A clean application can help the lender move quickly. That is one reason some homeowners still prefer a secured loan with an online application, even when they want to avoid long phone calls.
If your credit history is poor, the lender may still be comfortable with the loan-to-value. A no-guarantor debt loan for homeowners can suit people who do not want to involve friends or family.
Bad credit does not have to stop the application
A past missed payment, previous arrears, or a low credit score does not always rule out secured borrowing. The lender can look at the property, the planned debt consolidation, and the affordability of the new repayment. For a step-by-step page on this, read the bad credit homeowner loan guide.
A homeowner who wants to repay existing borrowing directly may also compare homeowner debt consolidation direct-lender options, especially where the aim is to avoid extra parties being involved.
If the main aim is to reduce monthly pressure and move everything into one payment, a secured loan to consolidate borrowing explains how a single loan can help with planning.
There are also practical benefits of consolidating debts, such as fewer payment dates and a simpler monthly budget.
When a secured loan may fit better than remortgaging
A secured loan can sit behind the existing mortgage, so the main mortgage may not need to be changed. Some people still compare a debt consolidation remortgage, particularly if their current mortgage deal is near the end.
The right route depends on the mortgage rate, the repayment term, the loan amount, and how quickly the customer wants the funds. Landlords can also read about a secured loan against a rental property if the borrowing relates to a let property rather than the main home.
Common questions before applying
Can I ask questions before applying?
Yes. It is sensible to check the basic details first. The debt consolidation loan questions page covers common points about repayments, loan amounts, and how the process fits together.
Will I need to clear the old debts?
For debt consolidation, the usual idea is that the old balances are repaid from the new loan. This can leave one with a clearer repayment plan, rather than a mixture of credit card, loan, car finance, and store card payments.
Is the application difficult?
The online application is usually straightforward, but accurate information helps. Have your income details, mortgage balance, and list of debts ready before you start.
Can I apply if I have previous arrears?
Yes, previous arrears do not always prevent an application. The lender will review the overall case, including income, property value, and loan-to-value ratio.
A secured loan for bad credit can be a useful option for homeowners who want a soft-search decision, a free valuation, no broker fee, and a single payment to consolidate existing debts.