Martin Lewis Loan Comparison Calculator

Compare the best loans to Martin Lewis using our loan comparison calculator below. Best rates for secured homeowner finance.

Delving into the world of borrowing, it’s essential to grasp the concepts of secured and unsecured loans. Let’s shed light on these financial arrangements to help you make informed decisions.

Loan advice from Martin Lewis 

Starting with secured loans, they involve borrowing money while providing collateral in the form of an asset you possess, typically your home. Securing the loan against this asset grants the lender a level of protection. One significant advantage of secured loans lies in their typically lower interest rates compared to unsecured loans. However, it’s crucial to recognise that opting for a secured loan entails higher risk.

Here’s why: If you find yourself falling behind on your payment obligations, there’s a possibility that the lender may take possession of the asset you pledged as collateral. This is known as repossession. To avoid such circumstances, it’s vital to comprehend the inner workings of secured loans and understand the potential consequences of defaulting on payments.

Therefore, before entering into any borrowing arrangement, take the time to assess your financial capabilities and consider the implications of both secured and unsecured loans. It would be worth considering the advice of a financial expert such as Martin Lewis or a dedicated secured loan broker such as ourselves at UK Property Finance to fully understand your options for greater clarity. By doing so, you’ll be better equipped to make sound financial choices that align with your circumstances and objectives.

Exploring the upsides and downsides of secured loans:

  • Advantages: Accelerated Borrowing Potential: Secured loans often allow you to access a larger sum of money compared to unsecured loans. This can be advantageous when you have significant financial requirements.
  • Reduced Interest Rates: Generally, secured loans come with lower interest rates compared to their unsecured counterparts. This can result in more favourable borrowing costs over the loan term, potentially saving you money.
  • Easier Approval Process: Securing a loan against an asset may increase your chances of approval, especially if you have a less-than-perfect credit history or are self-employed. Secured loans may offer more flexibility in terms of eligibility criteria.


  • Risk of Asset Loss: Securing the loan against your home or another valuable asset puts it at risk. Failing to keep up with repayments could lead to the repossession of the asset. It is crucial to consider this potential consequence before committing to a secured loan.
  • Extended Repayment Periods: Secured loans often involve longer repayment periods compared to unsecured loans. While this may result in lower monthly payments, it also means a prolonged commitment, potentially spanning up to 25 years. Ultimately, this can result in higher overall interest costs.
  • Variable Interest Rates: Certain secured loans may have variable interest rates, leaving you vulnerable to potential increases in your monthly repayments. It is essential to clarify whether the interest rate is fixed or subject to change, enabling you to plan and budget accordingly.
  • Additional Charges: Some secured loans come with expensive arrangement fees and other associated costs. When evaluating the total cost of the loan, it is crucial to consider these factors. Take into account all charges and ensure they are incorporated into the Annual Percentage Rate of Charge (APRC) for effective comparison with unsecured loans.

Exploring the spectrum of secured loan options:

When it comes to secured loans, various terms and categories are associated with this financial arrangement. Let’s explore some of these types:

  • Home Equity or Homeowner Loans: These loans are often referred to as home equity loans or homeowner loans. They involve borrowing additional funds from your mortgage lender, utilising the equity you have built up in your home. This option proves beneficial when you require financing for significant home improvements or need to raise a deposit to purchase a second property.
  • Second Mortgages or Second Charge Mortgages: Second mortgages, or second-charge mortgages, are another form of secured loans. These loans are secured against your property, ranking second in priority after the primary mortgage. Second mortgages can provide you with additional funds while keeping your existing mortgage intact.
  • First Charge Mortgages: In cases where there is no existing mortgage on the property, secured loans can be obtained as first charge mortgages. These loans take precedence as the primary secured loan against your property, offering borrowing opportunities when an initial mortgage is not present.
  • Debt consolidation loans: It’s worth noting that while not all debt consolidation loans are secured, some fall within the category of secured loans. These loans enable you to consolidate your existing debts into a single loan, often secured against an asset such as your home. However, it’s essential to evaluate the terms and consider the potential risks associated with securing your debt.

By understanding these types of secured loans, you can evaluate which option aligns with your financial objectives and enables you to leverage the available equity in your property effectively. Remember to carefully assess the terms, interest rates, repayment periods, and associated costs before making any borrowing decisions.

First and second charge mortgages

First Charge Mortgages: When you don’t have an existing mortgage on your property and opt for a loan, it is known as a first-charge mortgage. This type of loan takes priority as the primary secured loan against your property. By securing the loan with your property as collateral, you can access the necessary funds for your financial needs.

Second-Charge Mortgages: On the other hand, a second charge mortgage involves setting up a separate agreement distinct from your existing mortgage. This can be achieved by either approaching your existing mortgage lender or seeking a loan from a different lender. The second-charge mortgage, as the name implies, holds a secondary position in terms of priority against your property. It allows you to access additional funds while maintaining the existing mortgage arrangement.

Unifying your finances: debt consolidation loans simplified

Debt consolidation loans offer a convenient solution when you find yourself juggling multiple debts across various financial products. By merging these obligations into a single loan, you can streamline your repayment process.

Some debt consolidation loans can be secured by utilizing the equity in your home. If you opt for a secured debt consolidation loan, it may fall into the category of either a first-charge or second-charge mortgage. By leveraging your property as collateral, you can access funds to consolidate your debts effectively. However, it’s important to carefully consider the potential risks involved, such as the possibility of repossession if you’re unable to meet the repayment obligations.

Finding the very best deal with Donkey

When seeking the best deal on a secured loan, it’s essential to follow a strategic approach. Consider the following steps to increase your chances of finding a favourable arrangement:

Consult your mortgage lender: As a starting point, approach your mortgage lender to inquire about the loan options they offer. Some lenders provide special loan deals to borrowers with a proven track record of mortgage repayment. This can be an advantageous route to explore.

Utilise Comparison and Advice Websites with Caution: While comparison websites can be a valuable resource, it’s important to note that they may not provide a comprehensive selection of available deals. Nevertheless, checking such comparison websites or listening to the advice of a financial guru such as Martin Lewis from MoneySavingExpert can give you an initial idea of what’s available in the market. Remember to go beyond the cost of borrowing and thoroughly compare the terms and conditions of each loan. Additionally, assess the potential consequences if you find yourself unable to meet the repayment obligations.

Protect Your Credit Rating: When comparing multiple deals, particularly on comparison sites, consider whether this activity will be visible on your credit file. Repeated credit checks by lenders may negatively impact your credit rating. To avoid this, inquire whether lenders offer alternative options such as a ‘quotation search,”soft search credit check,’ or eligibility checker. These methods do not leave a trace on your credit reference file, allowing you to explore options without affecting your credit score. This is particularly useful during the shopping-around phase when you’re not yet ready to make a formal application.

By following these steps, you can navigate the loan market more effectively, finding the most suitable deal for your needs. Remember to weigh the cost, terms, and potential consequences while protecting your credit rating throughout the process.

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