Best Secured Personal Loan Rates: UK vs. USA (Mid-2025)

United Kingdom
Current Landscape for Secured Loans

• Secured loans in the UK, formerly called home equity loans or second-charge mortgages, are loans where a property or another valuable item is used as security. Because of this security, they usually have lower interest rates than loans without security; however, in addition to fees and default risks, the borrower should also take care of the insurance to be safe.
• According to Moneyfacts, these credits will give the opportunity to take out up to £150,000. Interest may be fixed or variable and usually goes with the fees like arrangement, valuation, or legal charges.•
• For example, Nationwide offers representative APRs starting at 5.8%, on a £10,000, 60-month loan, such as a £10,000 loan with a 60-month duration
• Like Santander, many banks advertise that fixed rates can start as low as 5.9% APR (for loans between £7,500 and £25,000) and what is more there is no penalty for overpayment.
• Average Personal loan interest rate is usually around 10% for smaller amounts (ca. £5,000), whereas for larger ones (e.g., £10,000+) it can be in the range of 6–8%.
• In case of less-than-perfect credit, credit unions like Lewisham Plus will be the help as they offer “Loyalty Loans” which are secured by savings and have APRs around 6.2%, which are pretty affordable options in that segment.
• Through sources like Which? one can get all the criteria involved in loans taking and a clear picture of APR being. For instance, for a sum of £15,000 lent over five years, the APRs from providers like Santander, M&S Bank, and TSB might be 5.9% announcing the most probable scenarios.

United States
Secured Loan Landscape

• In the U.S. borrowers are able to obtain a personal loan that is secured by assets such as savings or certificates of deposit (CDs) etc. This is done mostly through credit unions or a particular program.
• Patelco Credit Union is offering one of the lowest secured loan rates along with a minimum APR of 2.50%, lending of unlimited amounts based on your savings balance, no origination fees, and so on. However, it requires membership.
• DCU (Digital Federal Credit Union) is providing secured loans at a minimum rate of 3.50% APR, allowing an extension up to 10 years (120 months), not charging any origination fee, and even permitting the skipping of one payment per year (up to three times).
• LendingTree informs that in the case of secured loans under $35,000 that were issued in different regions of the U.S. at the beginning of 2025, the average APRs by credit score tiers were:
  800+: 19.33%
  740–799: 21.16%
  670–739: 23.29%
  580–669: 27.17%
  ≤580: 30.37%

For Context—Unsecured Loan Rates
As of June 2025, the average unsecured personal loan rate in the U.S was26.51% APR. This was the highest rate since early 2023 and was indicative of the general economic situation.
Typical unsecured loan products:
Upgrade: 7.99%–35.99% APR
Best Egg: 6.99%–35.99% APR
Upstart: 6.70%–35.99% APR

• OneMain Financial: 18%–35.99% APR
  Wells Fargo provides unsecured relations-based loans with a rate starting at 6.74% APR and ranging up to 26.74%
• Navy Federal Credit Union has unsecured personal loans with interest rates varying from 8.99% to 18.00% APR but provides “savings-secured” loans at 2.25% APR based on share rate plus 2%
• In the LendingTree marketplace, the averaging of unsecured personal loans by credit tier is depicted— the best quality borrowers (~800+) have an average of 11.66%, decreasing significantly compared to poor credit brackets MoneySavingExpert.com
• LendingTree additionally emphasizes that the average APR for secured loans is approximately 2.93 percentage points lower than that of unsecured loans for balances under $35,000