The short version A secured loan is borrowing where you put your home up as collateral. If you don't pay, the lender can ultimately force a sale. Because the lender's risk is lower, they will accept people that unsecured lenders won't — including people with defaults, CCJs and thin files.
How rates and APRC really work You'll see two numbers quoted: the **nominal interest rate** and the **APRC** (Annual Percentage Rate of Charge). APRC is the one that matters, because it bundles in fees, broker costs and the way interest compounds over the life of the loan.
For UK bad-credit secured loans you'll typically see: - Representative APRC ~10.8% on stronger profiles. - A panel range of roughly 9.5% – 29% APRC depending on credit, LTV and term.
If a deal quotes a low headline rate but a much higher APRC, the difference is fees. Always compare APRC, not rate.
ERC — early repayment charges An ERC kicks in if you pay the loan off early (e.g. refinance, sell the house, inherit money). Common shapes: - **No ERC** — best for flexibility. - **1% of balance** — modest. - **2 months' interest** — common; can sting on big balances.
If you think you'll refinance within a few years, an ERC-free product can be worth a slightly higher APRC.
When secured can genuinely help - Unsecured APRs are punishing you (30%+ across cards / overdrafts). - Your income is **stable** and forecast to stay stable. - You have meaningful equity in the home. - The new monthly payment is **clearly affordable** even on a bad month.
When to avoid it - Income is fragile or seasonal. - You're already considering an IVA or bankruptcy — secured restructuring rarely fixes that. - The new term is so long you'd pay more total interest than you'd save. - You don't fully understand what happens if you fall behind.
What we suggest Run the secured-vs-unsecured stress check before applying anywhere, and talk to a free debt charity first if you're behind on essentials.
Common questions
+Will a secured loan fix my credit score?
Indirectly. Consolidating into a single, maintained secured payment and clearing defaulted unsecured debt usually helps over 12–24 months — but only if you actually keep up.
+Can I get one with a CCJ?
Often yes, especially with equity. Pricing will reflect the CCJ until it ages off (6 years from registration).
+What's the difference between APR and APRC?
APR is used for unsecured credit, APRC is the equivalent for loans secured on property. Both bundle fees.