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Homeowner Loans

Borrow from £20,000 to £1 million

  • Easy, online application process
  • Flexible terms from 3 to 30 years
  • Help from an honest, UK based broker
  • Secured homeowner loans for most credit profiles
  • Get a decision in principle fast

Loans are secured against property - your home may be repossessed if you do not keep up repayments.

Homeowner Loans
 
 
 
 

How much do you need to borrow?

To qualify you must:

be a UK resident and own a property
be aged 25-85 with a minimum income of £20,000

Sorry, we are unable to help you as Secured Loans are only available to Homeowners.
Minimum Loan Amount is £20,000

Or call us now on 0800 032 4646

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Loans are secured against property - 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.
We are a loan broker Authorised and Regulated by the Financial Conduct Authority. We do not offer mortgages from high street lenders, so you should apply there first. If you were rejected, we may be able to help you.
We do not offer mortgages from high street lenders, so you should apply there first. If you were rejected, we may be able to help you.
homeowner loans with house

What is a homeowner loan?

 
 
 
 

Homeowner loans are a borrowing option where your home is used as 'security' or 'collateral' for the debt. This means should you fail to repay the balance, the lender is allowed to repossess your property to get their money back. However, this is usually a last resort.

This option is described using various terms; so you might also know it as 'secured loans' or 'second mortgages.'

Using your home as security lowers the risk for the lender, which may make it possible for you to borrow money even if you have a poor credit history. Additionally, lenders might allow you to borrow larger amounts, extend the repayment term, and offer a lower interest rate.

If you are looking to apply, our committed team is here to help you. We will do all the work for you; all you need to do is talk us through your needs so we can try to find you the right product.

We have over 600 solutions, with both fixed and variable rates available, allowing you to find a product personalised to your plans. 

person with credit cards

How do homeowner loans work?

 
 
 
 

As the name suggests, this type of loan is for people who own a home. This is because to qualify, you'll need to use your home as security.

Put simply, it is a second line of borrowing, which runs parallel to your primary mortgage. This means that your existing mortgage terms will not be changed. 

It works similarly to other loans, where you pay back a set amount each month, as well as any interest costs. Once the term has finished, your loan will have been repaid in full.

The repayment amount is influenced by the interest rate. This can either be fixed (ensuring consistent monthly payments) or variable (meaning repayments can rise or fall).

To start the process, you will need to make an enquiry to our experts either by using our online form above or by calling our UK based team on 0800 032 4646. We have no phone menus, so you will get straight through to our experts. 

Before you apply, remember that your home could be at risk if you don't repay, so always make sure you can afford it. 

calculator with piggy bank

How much could I get with a homeowner loan?

 
 
 
 

The amount you can borrow will vary depending on several factors including:

The amount of equity in your home: There must be enough equity in your property to cover the amount of money you wish to borrow.

Your credit ratingLenders will always consider this before offering you a loan. Using your home as security may help you get a loan even if you have a poor or bad credit score.

Your income: It is essential that you can afford to repay the loan. The last thing anyone wants is for you to lose your home, so it is essential to make sure your monthly repayments are affordable.

We will assess each factor carefully to make sure we find a product that has a comfortable monthly repayment plan for you. Our overall loan options stretch from £20,000 up to £1 million.

shaking hands for homeowner loans

Are homeowner loans easy to get?

 
 
 
 

They can be easier to get than unsecured loans, as the qualifying criteria can be less strict. Therefore, if you have any unusual or complex circumstances you may find it easier to get accepted for a homeowner loan.

The actual application process will vary from lender to lender. Most lenders will want proof that you can afford to repay the loan and that there is enough equity in your home to cover the debt if you are unable to repay. Your credit history will also be taken into account.

You will most likely need to:

  • Provide proof of income and discuss your monthly out-goings
  • Undergo a property valuation
  • Undergo a credit check

Some lenders may have extra steps; however, these are the ones that are usually completed. Our advisors will go through each step with you and make sure you understand the process clearly before proceeding.

In general, homeowner loans take around 4 weeks to complete, however previously we have been able to help some customers get their loans within just 5 working days!

pound sign and money

What do homeowner loans cost?

 
 
 
 

The cost of a homeowner loan will depend on how much you borrow, the length of your term, and the interest rate.

In general…

  • The more you borrow, the more you will repay. You will be paying interest on a larger amount of money.
  • The longer you borrow over, the more you will repay. You will be paying interest for longer.
  • The higher the interest rate, the more you will repay.

In the application process, our team will talk through your needs with you, to understand what is most important to you. They will always try to find a product with as little cost as possible for your specific needs.  

time running out

Are longer repayment periods better than shorter repayment periods?

 
 
 
 

It depends on your situation and financial priorities. Borrowing money for a longer period may reduce your monthly repayments, but you are likely to pay more in interest in total.  

A shorter repayment period will mean that your monthly payments are likely to be higher, however you will pay less money back in total, as you will be paying interest for a shorter period.

We deal with a wide variety of different lenders, and can provide repayment periods ranging from 3 to 30 years.  Therefore, we have solutions for both shorter and longer repayment periods.

weighing scales

What is the difference between a homeowner loan and a personal loan?

 
 
 
 

The main difference is that a personal loan (unsecured loan) does not require you to provide security against the debt. This means approval will be based on your credit history, your personal financial circumstances and your ability to afford the repayments.

Whilst these factors are also considered with a homeowner loan, lenders may be happier to lend to you in circumstances when you may not get approved for a personal loan.

Personal loans also tend to offer lower loan amounts and shorter repayments periods, as this reduces the risks to the lender.

On the other hand, homeowner loans use your property as security, which means they can repossess your house if you cannot keep up the repayments. This reduces some of the risk to the lender, particularly if there is a lot of equity in the property. Therefore, they may be happy to lend larger amounts over longer terms. 

Learn more about the differences in our blog on secured vs unsecured borrowing

How do I enquire?

 
 
 
 

We want to make the process of applying as smooth as possible. Here are the main steps involved in our application process.

  • Enquire

    Step 1: Submit an enquiry

    Fill out our enquiry form online or call us to speak directly to one of our advisors.

  • Speak to the team

    Step 2: Speak to the team

    After reviewing your enquiry, one of our experts will call you to discuss your situation.

  • We will handle the rest

    Step 3: We'll handle the rest

    If we find you a product that fits your needs and you're happy, we'll take care of the rest for you.

  • Completion

    Step 4: Completion

    Once all of the paperwork is completed, you will receive your funds.

What our customers say about us

 
 
 
 
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"The Loan Engine dealt with my bridging loan, and I can honestly say that they were more proactive than me, which is saying something! I can't fault them at all - every time I rang, they knew exactly the latest position of my case, and were always helpful and polite. "
Mrs W, Bordon
22 Jan 2024
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"Great. Very helpful. Worked hard for us. Worth 5 stars. Use them anytime. "
Mr H, York
17 Jan 2024
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"They’re friendly and helpful start to finish sandip, emily thank you. From start to finish very helpful I will recommend to everyone thank you."
Mr S, Merthyr Tydfil
05 Jan 2024
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"Excellent service from start to finish. They went the extra mile when complications arose, big shout out to Thisara. I can’t recommend them enough!"
Mrs M, Leeds
12 Dec 2023
Read more reviews >>

Frequently Asked Questions - Homeowner Loans

 
 
 
 
  • Can I get a homeowner loan with bad credit?

    Yes, using your home as security can increase your chances of being accepted with a bad credit history.

    However there is no guarantee of success and other factors such as equity, affordability and the amount you want to borrow will all be considered too.

    Previously, we have been able to help many customers get loans with bad credit and we will do our very best to help you too.

  • Are homeowner loans safe?

    Yes, as long as you can afford to repay the loan.

    It is essential to remember that all loans have risks. If you fail to make your repayments on time, you may be charged additional fees, or your credit score may be impaired.

    Homeowner loans carry the additional risk that your home may be repossessed if you fail to repay the loan. However, for many lenders this will be a very last resort – most may be able to look for alternative solutions if you experience difficulty making your repayments.

    That said, the risk of repossession still exists, so it is important to think carefully before committing. If you are confident you can afford to repay the loan, and will continue to be able to do so, then they can be safe.

  • How long does it take to get a homeowner loan?

    Usually, these loans take about 4 weeks to complete. The length of time it takes will largely depend on your personal situation and whether you have any complex circumstances that may make it harder to get a loan approved.

    We have been able to do some applications a lot faster. In some cases, it has only taken 5 working days to complete after getting all the documents needed.

    Learn more about the timescales in our blog on how long it takes to get a secured loan

  • Who are homeowner loans suitable for?

    Homeowner loans usually have longer terms and offer larger loan sizes, so it may be a suitable option if you want to borrow a higher amount over a long term.

    Many lenders are also more flexible with their criteria, because the loan is secured against your property. Therefore, if you have any complex circumstances, such as bad credit, you may find it easier to get this type of loan.

    People often use these to consolidate debt, raise funds for home improvements and other large purchases, or a combination of different plans. If you are looking to achieve this, it could be a good solution for you.

    If you are thinking of consolidating existing borrowing, you should be aware that you might be extending the terms of the debt and increasing the total amount you repay.

  • What should I consider before taking out secured homeowner loans?

    Before getting any finance solution it is important that you consider a few things first, which could include:

    - Decide whether you can afford it. The last thing you want to do is take out finance and be struggling to pay it back each month.

    - Assess all your options before you decide on a solution, to make sure you get the best product available for your needs.

    - Think about the length of time that you want to take the loan out for, so that you find a product that fits in with your plans.

    - Whether you are comfortable to secure a loan against the property.

  • What are the benefits of homeowner secured loans?

    Some of the benefits of this solution include:

    - Using a home as security can boost the amount of money you will be able to borrow.

    - May be able to get lower interest rates than if you went for unsecured finance.

    - These solutions can have longer repayment periods, so you can spread your repayments out and decrease monthly outgoings.

    - Lenders are often more relaxed with their qualifying criteria, so there could be a greater chance of being approved.

    - Spreading repayments out over a longer term could increase the amount of interest you have to pay overall.

  • What are the risks of homeowner secured loans?

    Some of the risks of this funding option may be:

    - Your property is at risk of being repossessed by your lender if you default on repayments, as your loan is secured against it.

    - Missing payments could hurt your credit score, which could affect your ability to get further finance in the future.

  • Where could I get homeowner loans from?

    Getting one of these solutions is easy; you can speak with a broker, bank or lender to discover the options available to you.

    Providers may have different qualifying criteria and products, so it could be worth researching a few options to work out the best fit for your needs.

    Our advisors are always more than happy to assist with your enquiry, so you find an appropriate solution.

  • What are the homeowner loan rates like?

    Interest rates are dependent on your own circumstances, so you will not know what you are eligible for until you enquire.

    Rates can be a bit lower compared to unsecured options, particularly if you do not have a very good credit profile. This is because borrowing against your home provides security for the lender in case you cannot afford the repayments.

    Therefore, you may get a better interest rate with this solution. However, it is worth consulting a mortgage advisor first to find out what you might be eligible for.

  • Are there homeowner loans for poor credit?

    Yes, there may be solutions available even if you have poor credit.

    There are also unsecured finance options available, but these lenders can be stricter with their criteria. Therefore, you may find it harder to get accepted with these providers if you have bad credit.

  • Can you get homeowner loans online?

    Yes, you can apply for these solutions online by using our quick and easy form above.

    After you have filled your details in, one of our advisors will get back to you to go through the next steps of the process.

  • Am I eligible for a homeowner loan?

    The biggest qualifying factor for these solutions is that you own a home (as the name suggests). This is because the loan is secured against a property that you own.

    It does not matter if it is a residential or rental house, the money can be borrowed against either property type.

Useful guides and blogs

 
 
 
 
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