Can I get a secured loan with bad credit?

Yes. Specialist secured-loan lenders consider applicants with missed payments, defaults, CCJs, IVAs and previous bankruptcy. Because the loan is backed by your property, lenders have more flexibility than with unsecured borrowing — but expect a lower maximum LTV and a higher rate than a clean-credit applicant.

Can I get a secured loan with a CCJ?

Yes. Active CCJs are accepted by several specialist lenders, especially if they're under £1,000 or have been satisfied. Older CCJs (3+ years) cause fewer issues than recent ones. Disclosure is essential — undeclared CCJs at underwriting stage are the main reason applications fall through.

Can I get a secured loan during an IVA?

Possibly. A small number of lenders consider applications during an active IVA, with the IVA supervisor's consent. After an IVA completes (and ideally a few years later) options widen significantly.

What rates should I expect with bad credit?

Light adverse (older missed payments, settled defaults): 8–10% APRC. Moderate adverse (recent CCJs, multiple defaults): 11–13% APRC. Heavy adverse (recent IVA, bankruptcy in last few years): 13–16% APRC. Rates vary by LTV — keeping below 75% combined LTV gives you the best of each tier.

How long after bankruptcy can I get a secured loan?

Most secured-loan lenders look for the bankruptcy to be discharged (typically 1 year after filing) plus a clean payment history since. Lenders willing to consider very recent bankruptcy exist but are rare and price accordingly. After 3–6 years post-discharge, the market opens up considerably.

Will applying affect my credit score further?

Not at the enquiry stage — we use a soft credit search to show you indicative options. Soft searches are invisible to other lenders and don't affect your score. A full credit check only happens once you commit to a specific application.

Adverse credit guide · 9 min read

Secured loans for bad credit: what's actually possible

If you've been turned down for a personal loan or a further advance, a secured loan is often still on the table. This guide covers what specialist lenders accept, what rates to expect, and how to give yourself the best shot at approval.

Last reviewed: April 2026By Charles Frank, FCA-authorised broker (30+ years)

Why secured lenders are more flexible than unsecured ones

An unsecured personal-loan lender has no recourse if you stop paying. They rely entirely on your credit history to predict whether you'll repay. So one missed payment in the last twelve months can be enough to decline you.

A secured-loan lender has your property as collateral. If everything goes wrong they can ultimately apply to repossess and recover their money from the sale. That changes the maths for them — they can lend to people the unsecured market won't touch, because their downside is protected. This is why "I've been turned down for a personal loan" is rarely the end of the road for a homeowner with equity.

What specialist lenders will consider

Issue	Typically accepted?	Notes
Missed payments (1–2)	Yes — most lenders	Older = better. Lower rate impact than CCJs.
Settled defaults	Yes — most specialists	3+ year-old defaults barely move the needle.
Active CCJs	Yes — specialists	Smaller and older = easier. £1k+ recent = harder.
Active IVA	Sometimes	Needs supervisor consent. Limited lender options.
Discharged bankruptcy	Yes — after 1 year	Best rates after 3–6 years post-discharge.
Mortgage arrears	Yes — specialists	Recent arrears narrow options sharply.

Indicative. Each lender has its own credit-event "windows" and will treat the same profile differently.

What it'll cost

Three things determine the rate you're offered: severity of the adverse event, how recent it is, and your combined LTV. As a rough guide:

Light adverse (settled defaults, old missed payments): 8–10% APRC at 75% LTV.
Moderate adverse (recent CCJs, multiple defaults): 11–13% APRC at 75% LTV.
Heavy adverse (recent IVA, recent bankruptcy): 13–16% APRC at 70–75% LTV.

Pushing LTV up adds 2–4% to each tier. Pushing LTV down (below 65%) takes 1–2% off. So if the loan size is flexible, dialling it back to a lower LTV band can pay back many times over the loan term.

How to maximise your chances

1. Disclose everything. Lenders will see it on the credit search. Undeclared adverse caught at underwriting is the #1 reason applications fall apart at the last minute.
2. Settle small CCJs if you can. A satisfied CCJ is much easier than an active one. Even £200–£500 settlements meaningfully widen lender choice.
3. Keep the LTV reasonable. Asking for less unlocks a wider lender panel and a sharper rate. If you can split a project (e.g. half now, half in 12 months) this can save thousands.
4. Use a broker. Direct-to-lender applications get declined and add a hard search to your file. A whole-of-market broker submits to the right lender first time. We cover the entire panel — including the specialist names not available direct.
5. Time the application. If a CCJ is about to drop off your file (6 years after issue), or a default is about to age past a key threshold, waiting a few weeks can move you up a credit tier.

Soft search first — find your real options without a footprint

The fastest way to find out what's actually available to you is a soft-search quote. We compare 30+ lenders including the specialist adverse-credit panel — and return real indicative figures based on your situation, with zero impact on your credit score.

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