- Who it's for
- UK Ltd companies, PLCs and LLPs with property or other assets to offer as security
- Typical amounts
- £25,000 up to £1,000,000 (larger deals need a specialist conversation)
- Typical terms
- 1 to 15 years, depending on the asset and purpose
- Minimum turnover
- £100,000 a year to use Lending Box
- Security
- A legal charge over property or another qualifying asset; property is at risk if repayments are not kept up
Indicative only. Subject to lender assessment and approval.
Who it's for
- Limited companies that own, or have equity in, commercial or residential property and want to borrow against it.
- Businesses that need a larger amount, or a longer repayment term, than unsecured lenders typically offer.
- Companies with less-than-perfect credit, where offering security can widen the realistic options.
- Directors who are comfortable with a legal charge being registered against the asset while the loan runs.
How it works
- 1You tell us about the company, the asset you can offer as security, and how much you want to raise.
- 2We check approximate equity in the property (value less any existing mortgage or charges) and match this against lender criteria.
- 3The lender instructs a valuation and, usually, solicitors to register the legal charge — these costs are typically passed to the borrower.
- 4Once legals complete, funds are released. Repayments are usually monthly over the agreed term.
How much can you borrow against an asset?
Lenders usually lend against the equity in an asset rather than its full value, leaving a margin in case they ever need to sell. For property, this is commonly expressed as a maximum loan-to-value (LTV) once any existing mortgage or charge is accounted for.
- Commercial property: lenders often go up to around 65–75% combined LTV, depending on the sector and tenancy.
- Residential property used as security: typically similar limits, subject to any existing residential mortgage.
- Other assets, such as plant, machinery or land, can sometimes be used, though valuations and advance rates vary widely.
- The amount offered also reflects the company's ability to service the repayments from income.
First charge vs second charge
If the property already has a mortgage, a new secured loan is usually registered as a second charge, sitting behind the existing lender. This affects pricing and process.
- A first charge lender is repaid first if the property is ever sold; this usually means lower rates.
- A second charge lender takes on more risk and typically needs consent from the first charge holder before proceeding.
- Redeeming or refinancing the first charge at the same time is sometimes an option, and can be worth discussing with a specialist.
Costs to budget for
Beyond the interest rate, secured loans carry setup costs that unsecured loans usually don't.
- A valuation fee, paid upfront or added to the loan.
- Legal fees for both the lender's and your own solicitor.
- An arrangement or facility fee, often a percentage of the loan.
- Possible broker fees, agreed with you upfront and disclosed in our terms.
Is a secured loan the right choice?
Secured lending suits businesses that have equity to offer and want the lowest possible rate or the largest possible amount, and who are comfortable with the asset being on the line. If you'd rather not put property at risk, it's worth comparing against unsecured business loans or revenue-based finance first — a specialist can talk through the trade-offs before you commit.
Our service is free to your business. We're paid a commission or finder's fee by the lender if finance completes; see our Broker Terms for details.
Eligibility
- A UK limited company, PLC or LLP (not available to sole traders or partnerships).
- Annual turnover of at least £100,000.
- A property or other qualifying asset with sufficient equity after existing charges.
- A credible reason for the borrowing and a plan to service repayments from trading income.
- Directors willing, in most cases, to also give a personal guarantee alongside the charge.
Documents you'll need
- 3–6 months of business bank statements.
- Details of the property or asset: estimated value, any existing mortgage or charge, and title information.
- Latest filed accounts and, where available, recent management accounts.
- A short explanation of what the funds are for.
- Photo ID and proof of address for directors, and proof of ownership of the asset.
Advantages
- Access to larger amounts than most unsecured products allow.
- Generally lower rates than unsecured finance, because the lender's risk is reduced.
- Longer repayment terms can mean lower monthly payments.
- Can be available to businesses that unsecured lenders would decline.
Things to weigh up
- The asset, often your home or commercial premises, is at risk if you fall behind on repayments.
- Valuation and legal fees add to the upfront cost and can take time to arrange.
- The legal charge restricts what you can do with the asset until the loan is repaid or the charge released.
- Not fast: the valuation and legal process usually takes longer than an unsecured application.
Worked example (illustrative)
A logistics company owns its depot, valued at around £900,000, with an existing mortgage of £300,000. The company wants to raise £250,000 to buy a second site and fund working capital.
A lender could consider a second charge loan up to roughly 65% combined LTV (around £585,000 of borrowing capacity against existing debt), comfortably covering the £250,000 requested.
Using the business loan calculator below, £250,000 over 10 years at an illustrative 9% a year works out at roughly £3,170 a month, before fees. The actual rate and term depend on the lender's valuation and assessment.
Property & secured calculator
Total interest (retained)
£17,100
- Maximum available
- up to £200,000
- Amount shown
- £150,000
- Rate
- 0.95% a month
- Repay at the end
- £150,000
Maximum is up to 70% of the property value, less existing mortgages or charges. Bridging interest is usually retained (taken from the loan upfront), so there are no monthly payments.
Illustrative only. Indicative only. Subject to lender assessment and approval.
Frequently asked questions
Related guides
Lending Box helps UK businesses access business finance, working directly with businesses and their trusted advisers. We are a credit broker and do not provide loans ourselves. All finance and quotes are subject to status and income. Applicants must be aged 18 or over, and terms and conditions apply. Guarantees and indemnities may be required. Lending Box can introduce applicants to a number of providers based on each applicant's circumstances and creditworthiness. We can also make insurance introductions. Lending Box will receive a commission or finder's fee for arranging such finance and insurance introductions. Broker Terms