Secured Debt consolidation cost guide: typical prices & fees in the UK

What you will really pay to consolidate debt

Switcha explains the typical UK costs behind secured debt consolidation so you can compare offers with confidence and avoid costly surprises.

Understanding APR is only half the story. Fees, terms and flexibility decide your true cost.

Is this guide for you?

If you are a UK homeowner weighing up consolidating multiple debts into one payment, this guide is for you. It suits borrowers comparing secured loans or remortgaging to reduce monthly outgoings, and anyone who wants a credible view of rates, fees, eligibility and credit impact before they apply.

Jargon made simple

APR and total cost

• APR is the annual cost of borrowing including interest and most compulsory fees. Secured consolidation rates typically start around 5.9% APR for larger amounts but can run up to roughly 29.9% depending on credit and lender.
• The total cost is what you repay over the full term. A lower APR over a very long term can still mean you pay more overall.

Secured vs unsecured

• Secured loans are backed by an asset, usually your home. This can unlock lower rates than unsecured loans but puts your property at risk if you miss payments.
• Unsecured loans have higher average rates in 2025, around 16.6% APR for a £3,000 loan over three years.

Fees that matter

• Arrangement fees often range from £500 to £1,500. Some lenders advertise lower fees, for example around £595, but always confirm.
• Valuation and legal costs may apply when security is taken against property.

Credit checks

• Full applications trigger a hard search that typically stays on your file for 12 months. Using soft-search eligibility tools first helps protect your score.

Your main routes to consolidate

Secured loan on your property

• Combines multiple debts into a single secured loan. Potentially lower rate than unsecured alternatives if you have equity.
• Typical amounts range from £1,000 to £50,000+, with 1 to 7 year terms. Larger loans and longer terms are more likely to be secured.

Remortgaging to absorb debts

• You replace your existing mortgage with a new deal that includes your unsecured balances. A Midlands case saw monthly payments fall by £240 by rolling £8,005 of high-interest card debt into the mortgage.
• Monthly relief can be meaningful, but you may extend repayment over the mortgage term, increasing total interest and securing previously unsecured debt against your home.

Unsecured consolidation loan

• Simpler, no charge on your property, usually quicker setup. Rates tend to be higher than secured options in 2025.

Securing debt can cut the rate but raises the stakes. Balance cost against risk and term length.

What it could cost you

Typical UK price points

• Rates: roughly 5.9% to 29.9% APR for secured consolidation, depending on credit, term and amount.
• Fees: arrangement £500 to £1,500 is common. Some lenders show lower fees, for example £595, but verify. Add possible valuation and legal costs.
• Term effect: longer terms reduce monthly payments but often raise the total repaid.

Side-by-side view

Fees checklist

Can you get accepted?

Lenders usually expect:

• Age 21+ and a regular income. For smaller secured amounts up to £19,999, some look for income from around £10,500 per year.
• A solid credit record with no recent bankruptcies, CCJs or IVAs in the last six years with many lenders.
• A UK property as collateral for secured loans, with adequate equity and suitable valuation.

What lenders assess:

• Credit history and utilisation across your existing debts.
• Stability of income and affordability under stress tests.
• Loan size, term and how the proceeds will be used to clear existing balances.

Tip: Use soft-search eligibility tools before a full application to gauge acceptance odds without affecting your score.

Step-by-step to consolidate smartly

1. List balances, APRs and remaining terms
2. Check your credit file across the three UK CRAs
3. Estimate loan size, term and monthly budget
4. Use eligibility checkers for likely rates and limits
5. Compare total cost with calculators across scenarios
6. Verify all fees, including legal and valuation
7. Read early repayment and overpayment rules
8. Apply with the lender offering best overall value

Pros, cons and what to weigh up

Pros:

• Potentially lower rates than cards or unsecured loans.
• One payment can simplify budgeting and reduce missed payments.
• Overpayments, where allowed, can cut interest and term.

Cons:

• Your home is at risk if you miss payments.
• Longer terms can increase the total repaid, even at a lower rate.
• Upfront fees can erode savings if the loan is small or term is short.

Considerations:

• Will you genuinely clear the original debts and avoid reborrowing?
• Do early repayment or overpayment rules help you pay down faster?
• Could an unsecured loan or balance transfer be cheaper overall?

Before you sign anything

• Model different terms. A lower monthly figure can mask higher lifetime cost.
• Confirm every fee in writing. Ask about arrangement, legal and valuation costs.
• Check if overpayments are penalty free. Some lenders allow them, which can save interest.
• Consider the security risk. Turning unsecured debt into secured debt changes the stakes.
• Protect your credit score by using soft-search tools before full applications.

The right deal balances rate, fees, term and flexibility - not just the lowest headline APR.

Alternatives to consider

• Unsecured personal loan: faster and no charge on your home, but often higher APRs in 2025.
• 0% balance transfer card: strong for short-term, disciplined repayment plans, subject to fees and acceptance.
• Snowball or avalanche repayment methods: pay down high-rate balances without new borrowing.
• Budget coaching or debt advice: impartial guidance if payments are already stretched.

Quick answers to common questions

Q: What APR should I expect for a secured consolidation loan? A: Strong profiles may see rates from around 5.9% APR. Weaker credit or longer terms can push rates much higher, potentially to the high 20s.

Q: Are arrangement fees worth it? A: They can be, if the lower APR still reduces total cost after fees. Always compare like for like using a calculator.

Q: Will a secured loan hurt my credit score? A: A hard search appears for 12 months. Over time, consolidating and paying on time can help by reducing utilisation and improving payment history.

Q: Can I repay early without penalties? A: Some lenders allow fee free overpayments or early settlement. Others charge. Check the terms before you commit.

Q: Is remortgaging safer than a separate secured loan? A: Both secure the debt against your home. Safety depends on affordability, term and your discipline to avoid reborrowing.

Q: What loan sizes and terms are typical? A: Amounts from £1,000 to £50,000+ are available, with terms typically 1 to 7 years for secured loans. Larger loans often require security.

What to do next

• Use Switcha’s loan and remortgage calculators to compare monthly payments and total costs side by side.
• Run eligibility checks with multiple lenders to find realistic rates without harming your score.
• Shortlist two to three offers, verify all fees in writing, and choose the option that balances rate, term, flexibility and risk.

Important information

This guide is for general information only and not personalised advice. Securing debt against your home puts it at risk if you miss payments. Always check lender terms and consider independent advice before proceeding.