For loans worth huge amounts and at very low-interest rates, a secured personal loan may be the best option. When you use an asset like a house, money, or a car as a guarantee, lenders get extra security, which is usually reflected in lower interest rates than those on unsecured personal loans.
Next, we will compare the best-secured loan rates in the UK and the US and discuss what the borrowers should know before signing up.
Secured Loan Rates in the UK
Secured loans in the UK are also known as homeowner loans as they are generally linked to your house. The loans come with higher borrowing limits and are typically repayable over a longer period.
Typical Rates & Offers
- High-street banks such as Nationwide and Santander are currently giving loans with a rate of 5.8-5.9% APR as the representative rate. Principal loans of more than £10,000 have particularly attractive rates.
- According to comparison platforms such as Which? and Moneyfacts, the real average rate for secured loans is close to 6%, particularly for borrowers with good credit scores.
- Credit unions can be a very affordable alternative to traditional lenders, with some of them offering secured products (where the loan is backed by the members’ savings) at 6.2% APR. So if your credit history is not strong but you have some money you can deposit as security, this would be a good choice.
Example
Taking out a £15,000 loan over a period of 5 years would expose you to approximately 5.9% APR at the top banks but this is subject to your credit rating and how much equity you have in your property.
Secured Loan Rates in USA
In the U.S., secured loans are not that much different as well. Traditionally, however, these are not property-backed loans; they are usually tied to a savings account, a certificate of deposit (CD), or a vehicle. Credit unions, in particular, are famous for their lower secured loan rates as they offer loans at a rate which is lesser than what big national lenders charge.
Rates & Offers Typical
- Patelco Credit Union: One of the lowest rates in the country, with the rate of a savings-secured loan at 2.50% starting at 2.50% APR.
- Digital Federal Credit Union (DCU): Secured loans starting at 3.50% APR with adjustable terms not exceeding 10 years.
- Navy Federal Credit Union: Savings-secured personal loans might have rates going down to 2.25% APR depending on the membership status and the type of collateral used.
- Traditional lenders such as Wells Fargo or online marketplaces (Upgrade, Upstart, Best Egg) mainly deal with unsecured personal loans. The interest rates on such loans are much higher and are even higher when the credit is not good, i.e., 15%–30% APR on average.
Example
Suppose you saved $10,000 in a savings account; then, you borrowed money based on that saving, you might get an APR between 2.5% and 3.5%, i.e., $10,000 loan against your savings account, APR gets as low as 2.5%–3.5%. The unsecured loan of the same amount with the bad credit rate may probably cost you over 20% APR.
UK vs. USA — How Do They Compare
| Country | Best Secured Loan Rates (2025) | Typical Collateral Used | Average Unsecured Loan Rates |
|---|---|---|---|
| UK | 5.8%–6.2% APR | Property / Home equity | 6%–10% (larger loans cheaper) |
| USA | 2.25%–3.50% APR (credit unions) | Savings / CDs / Vehicles | 20%–30% average |