Secured Loans for Bad Credit (2026): Instant Decision & High LTV
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Poor credit can limit your ability to borrow money through mainstream lenders, with many high street banks refusing to lend to borrowers with adverse credit.
Secured loans offer a more accessible route to finance, due to the high number of specialist lenders and increased security due to property backing.
In the secured loan market, lenders assess the full picture, not just your credit history.
In this guide we break down who can qualify, how applications are assessed, acceptable credit issues and some of the latest rates.
Secured Loans for Bad Credit
Secured loans are a popular way for homeowners with bad credit to borrow money against their home.
By securing the finance against your property, the risk to the lender is reduced in the event of default. This enables them to offer more flexible lending criteria and consider applications that would be unacceptable for an unsecured loan.
Instead, lenders can take a balanced view based on a few key things. They are:
- The severity of recent credit issues – historic ones are less of an issue.
- The borrower’s current financial security.
- The available equity in the property.
- The affordability of the proposed new borrowing.
If all of these are acceptable, there is a very good chance that a secured loan application can be approved, despite a history of bad credit.
Can I Get a Secured Loan with Very Bad Credit?
Yes, even with very bad credit issues, there is a good chance you can get a secured loan as long as you can meet the affordability rules and have sufficient equity.
The key factors that impact whether you qualify are your equity (a lower LTV gives a better chance of approval), affordability, the time since the issues occurred, whether they are now satisfied and the type of credit issue you faced.
Some credit blips are worse than others from a lending perspective. For example, current mortgage arrears are considered a very serious problem, whereas missing payments on a mobile phone is far less of an issue.
Of course, not all applications can be approved, and with very bad credit issues, your choice of lender will be limited, but there are often options available.
In the secured loan market, lender criteria vary greatly between each provider, so working with the right lender greatly matters.
It’s also important to remember that being declined by one lender doesn’t mean that every lender will decline. If you’re unsure how to find the right lender, consider working with a reputable broker.
Accepted Credit Issues: CCJs, Defaults, and IVA
We can accept applicants with a wide range of credit issues, including CCJs, defaults and IVAs.
Here is a breakdown of what we can consider:
- CCJs (County Court Judgments)
- Some lenders accept satisfied CCJs
- Others may consider unsatisfied, especially if it was more than 12 months ago
- Defaults
- Often acceptable, especially if historic or settled
- The number and value of defaults can impact options
- IVA (Individual Voluntary Arrangement)
- A recent IVA will result in a more limited lender pool
- Some lenders consider discharged or older IVAs
- Missed payments/mortgage arrears
- Recent issues may reduce options
- Improving payment history strengthens applications and improves your chances of approval
It’s important to remember that most adverse credit types can be considered, but terms, rates, and lender choice may be impacted.
That’s where a good broker, like ourselves at ABC Finance can help you to find the right lender and give you the greatest chance of approval.
Bad Credit Secured Loan Rates 2026
Bad credit secured loan rates are higher than those for borrowers with clean credit, although in some cases, the difference is small.
These increased rates reflect the increased risk of default to the lender, much like bad credit mortgage rates.
The key factors that impact the rate charged are:
- Loan-to-value (LTV)
- Severity and recency of credit issues
- Income and affordability strength
- Loan size and term
It’s important to look past the headline rate offered and consider the wider picture. The impact of fees on secured loan borrowing can be significant and impact the overall cost of borrowing.
Broker fees, in particular, can increase your costs, especially when added to the loan, so carefully consider this.
Many brokers charge up to 12.5% broker fees for their service. At ABC Finance, we offer a market leading 5.5% broker fee, saving out clients an average of £2,880 in broker fees.
