About homeowner loans

Homeowner loans (also called secured loans) are loans that are secured against property. If you own your home, a homeowner loan can be a good way of raising the money you need, whatever you need it for.

Since it's secured against your home, a homeowner loan is likely to come with a lower interest rate than an unsecured loan - you're using your property as a guarantee that you can repay the funds, so there's less risk for the lender.

It might also mean you could borrow more money and pay it back more slowly (although repaying any loan over a longer time period may cost more, as it means you're paying interest for longer).

How do I apply for a homeowner loan?

Talk to our homeowner loan specialists. Once you've told them what you're looking for, they'll advise you on your options and search our panel of lenders for the loan that best suits your circumstances. You could have a decision in principle on the same day, and in some cases, at little as an hour!

If you decide to go ahead, they'll take care of all paperwork and administration on your behalf, so you can access the funds as soon as possible.

How do homeowner loans work?

It depends on how much equity you have in your home - how much of your home you don't owe anything on.

Equity equals value of home minus value of any mortgages / homeowner loans secured against it.

Our loan advisers will be able to tell you how much of this equity can safely be used as collateral for a homeowner loan.

(Of course, equity isn't the only consideration. If you're looking for a homeowner loan, you'll also have to show you can afford the repayments.)

Homeowner loans & the housing market

When house prices fall, some homeowners may find they don't own enough equity to get a homeowner loan. They may already owe more on the house than it's worth (known as negative equity), or they may be worried that any further fall would put them in that position.

Even so, house prices are still far higher than they were ten years ago (for example), which means homeowner loans are still very much an option for millions of homeowners: Bank of England figures show that about 60% of mortgagors had at least 50% equity in their property in 2008.

What's more, 50% is a significant 'safety margin' against further price drops, so a homeowner loan could still be a good idea for people with less than 50% equity.

Talk to our experts and find out.

Homeowner loans & debt consolidation

Many people find homeowner loans are a great way to consolidate their debts: pay off all your unsecured debts with a homeowner loan and you could significantly reduce your monthly outgoings and the interest rate you're paying on your debt every year.

It's also possible to reduce your monthly payments by arranging to repay your loan over a longer period - although this will increase the total cost, as the money will spend longer gathering interest.

The overall cost for comparison is 17.9% APR (typical).
66% of our customers get this rate or lower

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THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. DEBT CONSOLIDATION MAY INCREASE THE AMOUNT TO BE REPAID IN THE LONG TERM. Subject to status. A 12.5% arrangement fee is payable on completion. The actual rate available will depend upon your circumstances. Ask for a personalised illustration. Calls may be recorded.

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