What is a Homeowner Loan?

Low interest rate, flexible value, high acceptance loans

It’s well known that homeowner loans offer good interest rates and the ability to borrow more than unsecured loans, but what are they? Why are the rates better?

Houses image

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.

Why Choose a Homeowner Loan?

They’re easier to obtain

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

You can borrow more

The maximum unsecured loan is £25,000, yet homeowner loans can be as much as £100,000 if you have the right circumstances.

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 flexibile with your loan term to find the repayment that fits best for you.

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.

If your issue isn’t covered in our FAQ’s, you can of course contact us via the Contact Us page (can be accessed via the FAQ page)

“I saved £334 per month by choosing a homeowner loan”

Barry Jones, Northwich

I was paying over £680 a month to cover £27,500 of debt which included my credit card balance and 2 unsecured loans.

I was advised to try a homeowner loan instead, and I couldn't believe how much I saved! I pay under £350 per month now, for the same amount of money owed!

Based on a debt of £27,500:

£683

per month

Unsecured Loan

£349*

per month

Homeowner Loan

Total saving per month:

£334

*Please note that spreading the cost over a longer period may mean you pay back more in the long term. This example may help those who cannot afford or want to reduce their monthly credit bills to help them manage their money more efficiently.