Secured loans have kicked off 2025 with a bang, according to new research by specialist mortgage lender Pepper Money. The latest findings reveal that over half (51%) of UK adults are now aware of secured lending as an avenue to raise capital. This figure rises to 54% amongst homeowners who may be considering ways to borrow without interrupting their favourable, primary mortgage rate.
This marks a notable rise from previous research from the leading specialist lender, which found that only 33% of homeowners with a mortgage were familiar with this option (April 2024). The step-change can partially be attributed to the ongoing impact of rising living costs, high inflation, and stagnating wages, which are prompting more homeowners to explore alternative ways of accessing funds.
Pepper Money has been proactive in raising awareness of secured loans, using targeted campaigns to help consumers better understand how these products can support their financial goals. As economic pressures persist, secured loans are increasingly being viewed as a practical solution for homeowners looking to unlock value from their properties.
This growing awareness of secured loans has translated into a strong boost in the use of secured lending. Analysis of official data from the Finance & Leasing Association (FLA) shows that the total value of lending has risen by more than 40% over a two-year period, equivalent to £137 million, from £333 million in Q1 2023 to £470 million in Q1 2025**.
Total UK secured loan mortgage value
Source: FLA
Over a two-year period, the total volume of secured loans has increased by more than a quarter (26%), rising from 7,446 loans in Q1 2023 to 9,406 loans in Q1 2025. If these trends continue, the number of borrowers taking out a homeowner loan is expected to reach over 42,000 by the end of 2025, up from 35,706 in 2024 and 30,466 in 2023.
A total £6.5bn of housing wealth was accessed by property owners using secured loans from 2020-2024, an increase of 27% compared to the previous five years. The homeowner loans market expanded by nearly a third (31%) during the same period, marking the highest growth rate in the mortgage industry***.
Compared to other lending, such as unsecured loans and credit cards, secured loans can be repaid over a longer period, enable customers to make unlimited overpayments, and typically have lower interest rates.
Secured loans allow customers to access the equity in their homes without affecting their existing mortgage rates, providing a viable alternative source of funds for a number of purposes such as funding home renovations, to consolidate debt, pay a tax bill or navigate a significant life event.
Volume of UK secured loans
Source: FLA
Ryan McGrath, Director of Second Charge Mortgages at Pepper Money, comments: “The secured lending market continues to gather momentum, with more than half of homeowners now aware of this previously little-known product.
“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.”
