Awareness climbs amid rising financial pressures
Secured lending is becoming increasingly recognised among UK homeowners, according to recent data released by specialist mortgage lender Pepper Money.
New findings from the lender show that 51% of UK adults are now familiar with secured loans as a financing option. Among homeowners, awareness is even higher at 54%. This reflects a sharp rise from April 2024, when just 33% of mortgaged homeowners reported awareness of such products.
The growth in recognition appears linked to ongoing economic strain, including inflation, rising living expenses, and stagnant wages, which have driven more consumers to seek alternative ways of raising funds.
Pepper Money said it has actively promoted secured loans through targeted marketing, aiming to educate consumers on how these products can support various financial needs. The lender added that secured loans are gaining popularity as a solution for homeowners looking to access equity without altering their primary mortgage arrangements.
Market data supports this trend. Figures from the Finance & Leasing Association (FLA) indicate that secured lending grew by 40% over two years, with total loan values climbing from £333 million in Q1 2023 to £470 million in Q1 2025 — an increase of £137 million.
Loan volumes also rose significantly over the same period, with the number of secured loans issued jumping 26%, from 7,446 in Q1 2023 to 9,406 in Q1 2025. Forecasts suggest that secured loan borrowers could exceed 42,000 by the end of 2025, up from 35,706 in 2024 and 30,466 in 2023.
Between 2020 and 2024, homeowners accessed £6.5 billion in property wealth through secured loans, marking a 27% rise compared to the previous five years. Over the same period, the overall market for homeowner loans expanded by 31%, the fastest rate of growth across the mortgage sector.
Unlike unsecured borrowing options such as credit cards, secured loans typically offer lower interest rates, longer repayment terms, and allow unlimited overpayments. They also enable homeowners to access funds without affecting their existing mortgage rate, making them a viable choice for needs such as renovations, debt consolidation, or covering large expenses.
“The secured lending market continues to gather momentum, with more than half of homeowners now aware of this previously little-known product,” said Ryan McGrath (pictured), director of second charge mortgages at Pepper Money. “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.
“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.”
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