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Secured Loans · 5 min read

How much can I borrow on a secured loan?

Two limits decide what you can borrow: the equity in your home, and what you can afford to repay. Here's how UK lenders calculate both.

Last reviewed: October 2026

Key takeaways
  • ✔ Most lenders cap combined LTV at 85% — some go to 90% with clean credit
  • ✔ Income multiples are typically 4–4.5× household income
  • ✔ Both limits apply — your borrowing is capped by whichever is lower
  • ✔ Adverse credit reduces both LTV and income multiples available to you
  • ✔ Property value is established by a fresh valuation, not your estimate

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.

The two limits that decide what you can borrow

Secured loan lenders apply two separate caps and lend whichever is lower:

  1. Equity cap (LTV). A maximum percentage of your property value, including your existing mortgage. This protects the lender if your home has to be sold.
  2. Affordability cap. A monthly payment you can demonstrably afford from your income, after your existing commitments. This protects you (and the lender) from over-borrowing.

Both have to be satisfied. Plenty of equity but stretched income? Affordability cap kicks in. Comfortable income but already 80% mortgaged? Equity cap kicks in.

How LTV is calculated

Combined LTV = (existing mortgage + new secured loan) ÷ property value.

Example: a £300,000 home with a £150,000 mortgage. At an 85% combined LTV cap, total secured borrowing can be £255,000. Subtract the existing mortgage and your maximum secured loan is £105,000.

Credit profileTypical max LTV
Excellent (no adverse)85–90%
Good (minor issues)85%
Fair (some adverse)80%
Poor (significant adverse)70–75%

Worked examples

Property valueExisting mortgage85% combined LTV ceilingMax secured loan
£200,000£100,000£170,000£70,000
£300,000£150,000£255,000£105,000
£500,000£200,000£425,000£225,000
£500,000£0 (mortgage-free)£425,000£425,000

These figures are the equity cap only — your actual borrowing also has to clear the affordability check.

The affordability check

Lenders model your monthly net income against your committed outgoings — existing mortgage, credit cards, personal loans, car finance, child maintenance, regular subscriptions — plus the new secured loan payment, often stress-tested at a higher rate (usually +1–3%).

As a rough guide, total secured borrowing is typically capped at 4–4.5× household income. Some specialist lenders use bespoke calculations and can go higher for high-earners or applicants with low fixed outgoings.

Frequently asked questions

What's the maximum I can borrow on a secured loan?
Most lenders cap secured loans at £500,000–£1,000,000, with a few specialists going up to £2,500,000 for high-value properties. The actual amount you can borrow depends on the equity in your home, your income and your credit profile.
What's the minimum loan amount?
Most second-charge lenders have a £10,000 minimum, though some accept loans from £3,000. Smaller amounts are usually better suited to unsecured personal loans.
What LTV will lenders accept?
Most secured loan lenders cap combined LTV (your existing mortgage plus the new loan, divided by property value) at 85%. Specialist lenders may go to 90% for clean credit, or down to 70–75% for adverse credit.
Will my income limit how much I can borrow?
Yes. Lenders use affordability assessments — typically capping borrowing at 4–4.5× your annual household income, after accounting for existing commitments. Some specialist lenders use bespoke affordability calculations rather than strict income multiples.
Can I borrow more if my home has gone up in value?
Yes. Increased property value means more equity, which can mean a higher available loan. Lenders will commission an updated valuation as part of the application — they won't simply rely on your estimate or the original mortgage valuation.
Does my existing mortgage affect what I can borrow?
Yes. Your existing mortgage balance is deducted from your property value to calculate available equity. A higher remaining mortgage means less headroom for a secured loan.
Learn more about secured loans

Our secured loans overview explains the main options in plain English and shows the providers we compare.

Read the secured loans overview →
Important: Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. This guide is for information only and is not financial advice. CleverCompare is an independent comparison and guides site — we don't lend, broker loans or give advice. Free, impartial guidance is available from MoneyHelper (moneyhelper.org.uk).