Starting in July 2026, Jubilee 2000 has a debt consolidation loan lender offering a capped rate of 7.91%. Here are the key features:
- Loan secured on your home
- 7.91% capped rate
- 90% loan-to-value
- Free valuation
- A decision in principle based on a soft credit search that has no impact on your credit file
- No lender, broker or product fees
- Direct lender
- Easy online application
- Single or joint applications
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Debt Consolidation Loan Interest Rates
Debt consolidation loan rates depend on the type of borrowing, the loan-to-value ratio, the loan size, and the lender’s view of the application. A secured homeowner loan usually has a lower rate than an unsecured personal loan because the lender has property security. The current Jubilee capped rate is designed to sit close to the wider interest-rate market. The Bank of England Bank Rate is 3.75%, so a rate around two percentage points above Bank Rate would be about 5.75% before lender margins, product design, and case details are considered.
For a simple overview of how these products work, the guide to debt consolidation loans is useful because it explains why several balances can be consolidated into a single monthly payment. If the main balance is on cards, a credit card debt consolidation loan may be the most relevant starting point.
What affects the rate?
The rate on a secured debt consolidation loan is usually shaped by the property value, the first mortgage balance, credit history, income, and the amount being borrowed. A homeowner looking at using equity to repay £25,000 may see a different rate from someone comparing a large debt consolidation loan, even when both applicants use the loan for similar debts.
The loan-to-value is especially important. A low LTV typically gives the lender greater comfort, while a higher LTV can still be approved when the case is straightforward. Readers who want the basics of property-backed borrowing can read homeowner loans explained before comparing rates.
| Loan Type | Indicative Rate Range | Typical Use |
|---|---|---|
| Secured debt consolidation loan | 5.19% – 8.24% | Larger debts, credit cards, personal loans, and car finance |
| Bad-credit secured loan | 7.08% – 10.92% | Debt consolidation where the credit file has previous problems |
| Unsecured debt consolidation loan | 9.74% – 24.85% | Smaller balances where the borrower does not use property security |
Secured and unsecured debt consolidation rates
Secured loans usually work best where the amount is large enough to justify using the property as security. Unsecured loans can be simpler, but the interest rate may be higher, and the maximum loan amount is often lower.
If the borrowing is modest, a £10,000 loan to clear debts may be enough to consolidate several balances into one. For bigger card or loan balances, the secured debt consolidation calculator can help estimate one monthly payment before making an enquiry.
Capped rates and variable-rate borrowing
A capped rate can be attractive because the rate has a ceiling. If the lender’s pricing tracks the reference rate downward, the borrower may benefit from lower payments without the rate exceeding the cap. That is different from a normal variable rate, which can move up or down.
For people comparing specialist lending, direct lender secured loan for bad credit may be relevant where the preference is to deal with a lender route rather than a full broker process. Where a fast response matters, secured loans for bad credit with an instant decision explain how an online decision can work with a soft search.
| Loan Amount | Indicative Rate | Loan-to-Value |
|---|---|---|
| £10,000 – £25,000 | 5.27% – 7.18% | 50% – 75% |
| £25,001 – £50,000 | 6.11% – 8.39% | 50% – 80% |
| £50,001 – £100,000 | 6.92% – 9.68% | 50% – 90% |
Bad credit and debt consolidation rates
Bad credit does not automatically mean the monthly payment has to be unaffordable. A lender may still consider equity, income, the purpose of the borrowing, and how the new loan affects the household budget. The page on debt consolidation loan with bad credit gives a more detailed route through the application process.
Some borrowers prefer debt consolidation loans for bad credit because they want a simpler route. Others may prefer secured loan broker with an online decision where the case needs more explanation or the income is less straightforward.
There are also separate pages for secured loans for bad credit and for people who want to consolidate debts without a guarantor. These are useful where the applicant has previous arrears, a thin credit file, or does not want another person added to the application.
Fees, valuation costs, and the real monthly cost
The headline interest rate is only part of the cost. Arrangement fees, valuation fees, early repayment charges, and broker fees can change the value of one offer compared with another. On this page, the highlighted Jubilee route is promoted as offering no lender, broker, or product fees and a free valuation.
The homeowner debt consolidation benefits page explains why a single repayment can feel easier to manage than several separate payments. If the aim is to pay off debts with a consolidation loan, it is worth considering both the monthly payment and the term, rather than only the lowest rate.
Debt consolidation and remortgaging
A secured loan is not the only way to combine debts. A debt consolidation remortgage can also be considered when the existing mortgage deal, loan-to-value ratio, and lender criteria make it suitable. Some people prefer a secured loan because it keeps the first mortgage untouched.
Where the property is a rental property rather than the borrower’s main home, secured borrowing for landlords may be a better page to read. The rate, lender appetite, and available loan size can be different when the security is a buy-to-let property.
How long can the rate approval take
An online decision can be quick, especially where the valuation is automated and documents are ready. The secured loan application timescale page explains the usual stages, including the decision in principle, valuation, checks, offer, and release of funds.
The interest rate quoted at the start may depend on the accuracy of the information supplied. Income, mortgage balance, property value, and debt balances should be entered carefully, so the lender can give a useful response first time.
Common questions on debt consolidation rates
What is a good interest rate for debt consolidation? A good rate depends on security, loan-to-value ratio, credit history, and fees. For larger secured homeowner loans, a rate in the 7% to 9% range may be competitive, with the lender also offering no fees and a free valuation.
Are debt consolidation loans always higher interest? No. A secured loan may have a lower interest rate than credit cards, store cards, car finance, or unsecured personal loans. The total cost still depends on the amount borrowed and the term.
What is the average fee for debt consolidation? Fees vary by lender. Some loans have arrangement, broker, valuation, or early repayment charges, while the route described at the top of this page is promoted with no lender, broker, or product fees.
Can consolidating debt improve my credit file? Many borrowers like the simplicity of one monthly payment. Keeping that new payment up to date can help the credit file look cleaner over time.
For shorter answers, the debt consolidation frequently asked questions page covers common debt consolidation questions in a more direct format.
