The maximum loan-to-value for a secured loan, also called a homeowner loan or second charge mortgage, is commonly 85% of your property's value including your existing mortgage. Some lenders go to 90% or even 95% for borrowers with clean credit and strong affordability, while adverse credit typically brings the cap down to 70% to 80%. On a £300,000 home with a £180,000 mortgage, that range means anywhere from £30,000 to £105,000 of potential borrowing.
- Secured loan LTV is always the combined figure: your mortgage balance plus the new loan, divided by the property value.
- Around 85% combined LTV is the most common ceiling among mainstream secured loan lenders.
- A few lenders consider 90% to 95% combined LTV for borrowers with clean credit, usually at higher rates.
- Adverse credit such as defaults or a CCJ commonly reduces the maximum to 70% to 80% of the property value.
- Affordability, not just equity, sets the final figure, and your home may be repossessed if you do not keep up repayments.
How is LTV calculated on a secured loan?
Loan-to-value on a secured loan is a combined measure. Lenders add your existing mortgage balance to the secured loan you want, then divide by the value of your home. A £180,000 mortgage on a £300,000 house is 60% LTV on its own. Add a £45,000 secured loan and the combined figure becomes £225,000 divided by £300,000, or 75%. Every lender's cap refers to this combined number, not to the secured loan alone.
The value used is the lender's, not yours. Most secured loan lenders start with an automated valuation, which draws on recent sales in your area and index data, and will instruct a desktop or physical valuation if the figure is uncertain or the LTV is high. A valuation that comes in below the price you had in mind can push the combined LTV over a lender's limit and reduce the amount available, so it pays to be realistic when you first ask a broker to check your options. Checking will not affect your credit score.
Two other things affect the calculation. If you have other charges on the property, for example an existing second charge or a Help to Buy equity loan, they are included on the debt side. And if the property is leasehold with a short lease, of non-standard construction, or a flat above commercial premises, many lenders reduce their maximum LTV to reflect the harder resale. Our guide on how much equity you need to consolidate debt looks at the equity side in more detail.
What are the common LTV caps for secured loans?
Lender criteria change frequently, so the figures below describe where the market commonly sits rather than any single lender's rules.
| Borrower profile | Common maximum combined LTV |
|---|---|
| Clean credit, strong affordability, standard property | 85%, with some lenders at 90% to 95% |
| Minor historic issues, for example old missed payments | 80% to 85% |
| Defaults or a CCJ within the last few years | 70% to 80% |
| Recent arrears, an IVA or a discharged bankruptcy | Commonly 65% to 75% |
| Non-standard or harder-to-sell property | Often 5% to 10% below the lender's normal cap |
The pattern is straightforward: the more risk a lender sees in your credit history or the property, the more equity it wants left behind the loan. Rates typically rise with LTV as well, so the maximum you can borrow is rarely the cheapest amount to borrow. FLA data shows 44,725 new second charge agreements worth £2.4bn were written in the 12 months to June 2026, and the bulk of that lending sits well below the top of these bands.
If your credit history is the limiting factor, our bad credit hub explains what different kinds of adverse credit mean for secured loan lenders, and our low equity and high LTV page covers the options when you are close to the ceiling.
How much could I borrow at each LTV cap?
Take a property valued at £300,000 with a £180,000 mortgage outstanding. The table shows the maximum secured loan available at each common cap, before affordability is considered.
| Combined LTV cap | Total lending allowed | Less mortgage | Maximum secured loan |
|---|---|---|---|
| 70% | £210,000 | £180,000 | £30,000 |
| 75% | £225,000 | £180,000 | £45,000 |
| 80% | £240,000 | £180,000 | £60,000 |
| 85% | £255,000 | £180,000 | £75,000 |
| 90% | £270,000 | £180,000 | £90,000 |
| 95% | £285,000 | £180,000 | £105,000 |
The gap between a 70% and a 95% cap on the same house is £75,000, which is why your credit profile matters so much to how much you can raise. In practice, though, few borrowers are lent the equity maximum. The lender also checks that you can afford the new payment alongside your mortgage and living costs, and the affordability figure is often the lower of the two. Our guide on how much you can borrow with a secured loan walks through the affordability side.
Should I borrow up to the maximum LTV?
Usually not. Borrowing to the ceiling leaves you with little equity as a buffer if property prices fall, makes remortgaging harder later because your combined LTV will be high when your fixed rate ends, and typically costs more, because lenders price higher LTV bands at higher rates. For a debt consolidation loan the sensible amount is the sum needed to clear the debts you are consolidating plus fees, not the largest figure a lender will offer.
It is also worth remembering that a secured loan puts your home behind the debt. If payments are not kept up, the lender can ultimately seek possession, and the less equity you have the more exposed you are if you need to sell in a hurry. Free, impartial advice from MoneyHelper, StepChange or Citizens Advice can help you decide whether consolidating at all is the right step before you think about how much.
If you are close to a lender's cap, a broker can often improve the position by choosing a lender with a more generous valuation approach, by suggesting a slightly smaller loan that drops you into a lower LTV band with a better rate, or by comparing the secured loan against a remortgage where the caps and pricing are different. Our secured loan vs remortgage comparison sets out how the two routes compare.
A secured loan is unlikely to work if your combined LTV is already above 85% to 90% before any new borrowing, if your property has fallen in value since you bought it, or if you have an equity loan or existing second charge that uses up most of the room. It is also a poor fit if the amount you need would only be available at the very top of a lender's range, since the rate at that level may wipe out the saving. In those cases a remortgage, a smaller loan, or free debt advice on non-borrowing options is worth exploring first.
Worried about debt? Get free advice first
If you're struggling, it's worth speaking to a free, impartial debt advice service before you borrow more. They don't sell anything and won't judge your situation.
- MoneyHelper: Free, impartial debt advice backed by government
- StepChange: The UK's largest free debt charity
- Citizens Advice: Free, confidential advice on debt and money
Checking your options with Equiclear will not affect your credit score.
Frequently asked questions
Can I get a secured loan at 90% LTV?
Some lenders will consider a combined LTV of 90%, and a few go to 95%, but usually only for borrowers with clean credit, stable income and a standard property. Expect a higher rate than at 80% or 85%. Many lenders stop at 85%, so the choice of lender is narrower at this level.
What LTV can I get a secured loan at with bad credit?
Commonly 70% to 80% combined LTV, depending on how recent and serious the issues are. Older, settled defaults may still allow 80% to 85% with some lenders, while recent arrears, an IVA or a bankruptcy typically brings the cap down to around 65% to 75%.
Does the secured loan LTV include my mortgage?
Yes. Secured loan LTV is always the combined figure of your existing mortgage plus the new loan, divided by the property value. A 60% mortgage plus a secured loan worth 20% of the value gives a combined LTV of 80%, and it is that 80% the lender's cap applies to.
Is there a minimum equity for a secured loan?
Lenders think in terms of maximum LTV rather than a minimum equity figure, but the effect is the same. At an 85% cap you need at least 15% of the value left after both loans. Most lenders also set a minimum loan size, commonly £10,000, which sets a practical floor on the equity required.
Why did the lender value my house lower than I expected?
Lenders use automated or surveyor valuations that lean on recent comparable sales rather than asking prices. A lower figure raises the combined LTV and can reduce the maximum loan. If you believe the valuation is wrong, your broker can sometimes challenge it with evidence of similar local sales.
Does a higher LTV mean a higher rate on a secured loan?
Typically, yes. Most secured loan lenders price in LTV bands, so a loan at 85% combined LTV usually carries a higher rate than the same loan at 70%. Borrowing slightly less to drop into a lower band can reduce the rate, which a broker will check for you.