A £20,000 secured loan at the illustrative rate of 7.9% would cost about £190 a month over 15 years, with £34,196 repaid in total. Over 10 years the payment rises to £242 and the total falls to £28,992. The loan sits behind your existing mortgage, which stays as it is. Lenders typically want your mortgage plus the new loan to stay within 85% of your home's value.
Illustrative rates: The rates in this example are fictional and used only to show how the numbers work. They are not an offer. Your actual rate may be lower or higher and will depend on your circumstances, your property and the lender. Consolidating debt over a longer term can mean you pay more interest overall, even if your monthly payment falls.
What does a £20,000 secured loan cost per month?
The table shows the same £20,000 at the fixed illustrative secured loan rate of 7.9% over five different terms. The pattern is the point: a longer term lowers the monthly payment and raises the total you repay.
| Term | Monthly payment | Total repayable | Total interest |
|---|---|---|---|
| 5 years | £405 | £24,274 | £4,274 |
| 10 years | £242 | £28,992 | £8,992 |
| 15 years | £190 | £34,196 | £14,196 |
| 20 years | £166 | £39,851 | £19,851 |
| 25 years | £153 | £45,912 | £25,912 |
For comparison, adding the same £20,000 to a remortgage at the illustrative rate of 5.4% over 20 years would cost about £136 a month and £32,748 in total. A remortgage usually carries the lower rate, but it replaces your existing mortgage deal and may trigger an early repayment charge; our remortgage page explains the trade-off.
What £20,000 means in practice
£20,000 is one of the most common consolidation amounts. It is often several cards plus one loan. Below £25,000 an unsecured loan may still beat a secured loan on total cost for clean credit, so the decision usually turns on credit history and equity.
Who lends at this size: Available from all secured loan lenders. This is also the amount used in the worked examples across this site. Our lender criteria database lists minimum and maximum loans lender by lender.
Tracked lenders that lend £20,000
4 of the 4 lenders we have reviewed publish a loan range that covers £20,000. These are each lender's overall minimum and maximum; individual plans can be narrower, and your equity, income and credit history decide what you could actually borrow.
- Evolution Money: £5,000 to £105,000 over 3 to 20 years. Direct to consumers online and by phone; also a credit broker to other lenders. Checked 15 September 2026.
- Norton Home Loans: £3,000 to £250,000 over 1 to 25 years. Through brokers only. Checked 15 September 2026.
- Pepper Money: £15,000 to £1,000,000 over 3 to 40 years (terms over 30 years need a loan of at least £150,000). Through brokers only. Checked 15 September 2026.
- Spring Finance: £10,000 to £300,000 over 2 to 30 years. FCA authorised brokers only; no direct applications. Checked 15 September 2026.
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How much equity do you need for a £20,000 secured loan?
Secured loan lenders look at combined loan to value: your existing mortgage plus the new loan, as a share of your property's value. Many lenders allow up to 85% combined, some higher for strong applicants and lower where credit history is more challenging. The table shows the property value you would need at three combined limits, assuming an existing mortgage of £150,000.
| Combined LTV limit | Minimum property value | Equity you would hold |
|---|---|---|
| 75% | £226,667 | £76,667 |
| 85% | £200,000 | £50,000 |
| 90% | £188,889 | £38,889 |
With a smaller mortgage you need less property value; with a larger one, more. Affordability is assessed separately: the lender checks the new monthly payment fits alongside your mortgage and other commitments, usually treating the debts you are consolidating as cleared.
Is a secured loan the right way to borrow £20,000?
Not always. Below about £25,000, unsecured personal loans are widely available to homeowners with a clean credit file and, because they involve no valuation, legal work or lender fees, they can be cheaper overall even at a higher rate. A secured loan tends to win when your credit history rules out unsecured lending at a sensible rate, when you want a longer term to keep the monthly payment down, or when you are consolidating several debts into one and the unsecured limit is not enough.
Whichever route, the same warning applies: you are securing debt against your home, so the new payment has to be comfortable, not just lower. If it would only work with nothing going wrong, free debt advice is the better first step.
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
How much would a £20,000 secured loan cost per month?
At the illustrative 7.9% rate, about £242 over 10 years, £190 over 15 years or £166 over 20 years. Your real rate depends on your equity, credit history and the lender.
How much equity do I need to borrow £20,000 against my home?
Enough that your existing mortgage plus £20,000 stays within the lender's combined loan to value limit, commonly 85%. With a £150,000 mortgage that means a property worth at least £200,000.
Can I get a £20,000 secured loan with bad credit?
Often, yes. Specialist lenders consider missed payments, defaults and CCJs, usually at a higher rate and a lower maximum loan to value. See our bad credit page.
Would a remortgage be cheaper than a £20,000 secured loan?
Often on rate, not always overall. If your mortgage deal has ended, a remortgage usually wins. If you are mid-way through a fixed rate, the early repayment charge can outweigh the saving, and a secured loan leaves the deal untouched.
Does checking my options affect my credit score?
No. Checking your options with Equiclear will not affect your credit score. A full application later is recorded on your file in the normal way.