What is a Homeowner Loan?

Low interest rate, high acceptance, flexible loans

It's well known that homeowner loans offer very low interest rates and the ability to borrow more than an unsecured loan.

But why? Let's take a look below.

So, what exactly is a homeowner loan?

Simply put, it is a loan only available to property owners (or mortgage holders), where your house is used as a security measure for the lender - just like your mortgage - so if you don’t repay your loan, your house can be taken as collateral.

Because of this extra security, you can make your asset work for you, and can often borrow larger sums of money with better interest rates than on an unsecured loan.

This doesn't mean your house is at risk - providing you meet your repayments as scheduled there will be no risk whatsoever to your home.

They're easier to obtain

Unsecured loans are almost always cheaper for those with good credit scores, but secured loans provide lenders with, well… security, so they're more willing to lend to less than perfect credit scorers. Subject to other lending criteria

You can borrow more

The maximum unsecured loan is £25,000, yet homeowner loans can be as much as £250,000 if you meet all of the necessary criteria.

You can borrow for longer

Homeowner loan lenders prefer to lend for longer periods of time, because of the higher loan amounts - this means you can be more flexible with your loan term to find the repayment that fits best for you. Please note that typically the longer the term the more interest you have to pay.


Want to know more?

We've created a section of FAQ's about homeowner loans which goes into more detail about the application process and how to deal with problems.

We can source secured loans with rates starting from 3.63% APRC, although the rate you secure will depend on your individual circumstances.

9.1% APRC Representative

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)