We've collected together the questions we're asked most about our service and processes and formed a list to help you find what you need.
What is a homeowner loan?
A homeowner loan (also known as a secured loan) is a loan that is secured against your property. In a similar way to your mortgage, you are using your property as security against the loan. Homeowner loans can be a good solution if you want to borrow a large amount of money. They are usually used to consolidate existing credit, to make home improvements or fund major purchases and as you can spread the repayments over a longer period than a personal loan, the monthly repayments can be lower. Your property is provided as security for the loan, lenders see you as less of a risk and may charge lower rates of interest. However, your home could be at risk if you are unable to repay the loan.
Do I qualify for a homeowner loan?
If you are a homeowner with an existing mortgage then you are likely to be eligible to apply for a homeowner loan.
What could I use the loan for?
Homeowner loans can be used for almost any purpose, however they are not able to be used for business purposes.
How much could I borrow?
Depending on the amount of equity available in your property, you may be able to borrow up to £250,000.
What is Loan to Value?
This is calculated as the amount you are looking to borrow (including your existing mortgage) as a percentage of your property's value.
Do you leave a footprint on my credit file?
The "soft search" that is carried out as part of your initial application has no adverse effect on your credit file. You will see the search on your own credit file but lenders will not see it. If you decide to go ahead and take out a loan, the lender will then make a search visible to other lenders.
How long could I take my loan over?
The maximum term for a homeowner loan is usually 25 years. Be aware that spreading your repayments over a longer period will reduce your monthly repayment, but you may pay more interest.
If you’ve still not found the answer to your question, please feel free to visit our contact us page and ask us directly.
Please note: If your query is regarding an existing loan, please contact your lender directly.
We can source secured loans with rates starting from 3.63% APRC, although the rate you secure will depend on your individual circumstances.
Representative example: Assumed borrowing of £18,000 over 120 months, with a fixed borrowing rate of 6.5% per annum for the first 60 months, followed by 60 months at the lender’s standard variable borrowing rate of 4.95% above Bank of England Base Rate. There would be 60 monthly instalments of £227.38 followed by 60 instalments of £221.71. Total amount payable £26,945.40 comprised of; loan amount (£18,000); interest (£6,920.40); Broker fee (£1,530)