Secured loans have seen a strong start to 2025, with more than half of UK adults now aware of them as a way to raise capital, according to research from Pepper Money.
Awareness was higher among homeowners, with 54% considering secured loans to borrow without changing their main mortgage rate.
In April 2024, only a third of homeowners knew about this option.
This increase in awareness came as people looked for different ways to access funds due to higher living costs and stagnant wages.
Pepper Money has run campaigns to help customers understand how secured loans can help with their finances.
Official figures from the Finance & Leasing Association (FLA) showed that the total value of secured lending rose by over 40% in two years, from £333m in Q1 2023 to £470m in Q1 2025.
Meanwhile, the number of loans went up by 26% in the same period, from 7,446 to 9,406.
The number of borrowers taking out homeowner loans is expected to reach over 42,000 by the end of 2025, up from 35,706 in 2024 and 30,466 in 2023.
From 2020 to 2024, £6.5bn of housing wealth was unlocked using secured loans, a rise of 27% compared to the previous five years.
The homeowner loans market grew by 31% during that time, the highest growth in the mortgage industry.
Ryan McGrath (pictured), director of second charge mortgages at Pepper Money, said: “The secured lending market continues to gather momentum, with more than half of homeowners now aware of this previously little-known product.
“This increased understanding, coupled with economic pressures, has been reflected in the amount of secured lending that is taking place, reaching £470 million in the first quarter of the year, which puts the market well on its way to reach £1.7 billion by the end of 2025, with Pepper Money’s 2024 lending volume standing at over £500 million.”
McGrath added: “More consumers are recognising the opportunity that secured loans can provide.
“Unlike personal loans or credit cards, these loans allow individuals to unlock the value in their property, offering larger loan amounts, longer repayment terms, and typically lower interest rates – as well as enabling them to borrow without impacting the rate on their primary mortgage, which isn’t possible with a remortgage.
“While not right for every homeowner, for the right person a secured loan can provide a sensible way to make home improvements, settle personal tax bills, pay off school fees, or consolidate debts.”
