BORROW AGAINST YOUR HOME

Yes, on the secured route. Specialist lenders assess your property, equity, and affordability alongside your credit file, which gives a broader picture than a credit score alone. Borrowers with missed payments, defaults, CCJs, or a past IVA can access secured lending, though the rate will be higher and the maximum LTV may be lower.

The practical question is whether the rate available makes borrowing worthwhile for your purpose. If the cost is disproportionate, it may be worth taking steps to improve your credit position first. Registering on the electoral roll, clearing small balances, correcting errors on your file, and avoiding new credit applications in the months before you borrow can all make a measurable difference. The secured loans for bad credit guide covers what specialist lenders look for.

The maximum depends on your equity (how much of the property you own outright) and your affordability (whether you can sustain the repayments). Most lenders apply a maximum combined LTV of 85%, which means your existing mortgage plus the new borrowing cannot exceed 85% of the property value. On a £350,000 property with a £200,000 mortgage, the theoretical maximum at 85% is £97,500.

In practice, the amount offered is usually lower because affordability sets the practical limit. The LTV and equity calculator shows the equity-based figure, and the monthly affordability checker gives an indication of the income-based limit.

It depends on what you are borrowing for, how much it costs, and whether you can comfortably sustain the repayments. Borrowing against your home to fund an improvement that increases the property's value, or to consolidate expensive unsecured debt at a lower rate, can be financially sensible if the numbers work. Borrowing for discretionary spending where the interest cost is high and the benefit is temporary requires more careful thought.

The key consideration is that your home is at risk. Unlike an unsecured loan or a credit card, defaulting on a loan against your property can ultimately lead to repossession. That risk is real regardless of how comfortable the repayments seem today, because circumstances change. If you are unsure, free guidance is available from MoneyHelper and StepChange.

The process starts with an eligibility check, which you can do through Squared Money with no impact on your credit score. Based on how much you need, your property, and your credit profile, we connect you to the right route: a specialist secured loan broker for larger amounts, or an unsecured lender for smaller ones.

For secured borrowing, the broker assesses your situation, confirms whether a secured loan, HELOC, remortgage, or further advance is the best fit, and manages the application. The process involves a property valuation, affordability assessment, credit checks, and legal work to register the charge against the property's title deeds at HM Land Registry. From application to funds, three to six weeks is realistic for a straightforward case. The step-by-step application guide covers the full process.

Both use your property to raise funds, but they work differently. A remortgage replaces your existing mortgage with a new, larger one. The old deal ends, and the difference is released as cash. A secured loan sits alongside your existing mortgage as a separate second charge without disturbing the original deal.

The main factor in choosing between them is usually the cost of breaking your existing mortgage. If your current deal carries an early repayment charge, that charge is added to the cost of the remortgage route. A secured loan avoids it entirely. Even where no ERC applies, a secured loan can still be worthwhile if your existing rate is well below current market rates. The secured loan vs remortgage guide includes a cost comparison calculator.

Yes, in two ways. A further advance lets you borrow additional funds from your current mortgage lender, added to your existing mortgage. Not all lenders offer this, and the rate on the additional amount may differ from your current rate. A remortgage lets you take out a new, larger mortgage with your existing or a different lender, releasing the difference as cash.

Both routes effectively let you borrow on your mortgage rather than taking a separate loan. Whether either is the best option depends on your existing deal. If you are mid-way through a competitive fixed rate, breaking the deal to remortgage can be expensive, and a further advance may be limited by your lender's criteria. In those situations, a separate secured loan alongside the mortgage may be cheaper overall. A broker can compare all three routes before any application is submitted.

Yes. This is exactly what a second charge mortgage (secured loan) or HELOC does. The new loan sits behind the existing mortgage as a second charge, registered at HM Land Registry. Your existing mortgage stays in place on its current terms. The amount you can borrow depends on the equity available after accounting for the existing mortgage balance.

Most borrowing against property involves homes that already have a mortgage on them. The lender assesses the combined position (the existing mortgage plus the proposed new borrowing) against the property value, and checks that the total monthly commitment is affordable. Properties owned outright with no mortgage can also be borrowed against, typically using a standard first charge mortgage rather than a second charge product.

Yes. Secured lending against buy-to-let and investment properties is available from specialist lenders. The assessment differs from residential lending: lenders typically focus on the rental income the property generates alongside the borrower's personal income, and the maximum LTV may be lower. Rates on buy-to-let secured lending tend to be slightly higher than residential rates.

If you are a portfolio landlord (owning four or more mortgaged properties), the assessment becomes more complex and specialist broker advice is particularly valuable.

Yes, on both secured and unsecured routes. Being self-employed does not rule you out, but it changes what lenders ask for. Most want at least one to two years of trading history and assess income based on accounts, SA302 tax returns, or a combination. Some specialist lenders accept one year of accounts, contractor day rates, or retained profits alongside salary.

A specialist broker is particularly valuable for self-employed borrowers because different lenders interpret self-employed income differently. A broker who understands how each lender on their panel assesses your income structure can place the application with the one most likely to view your figures favourably. The secured loans for self-employed guide covers the requirements in detail.

When a property is sold, all charges registered against it must be discharged from the sale proceeds. The first-charge mortgage is repaid first, then any second-charge secured loan. If the sale price covers both, the process is straightforward and you receive the remaining equity.

If the property has fallen in value and the combined debt exceeds the sale price, a shortfall arises. The second-charge lender may not be fully repaid and would pursue you for the outstanding amount. This is uncommon in a stable or rising market but becomes a realistic risk after borrowing at a high combined LTV in a market that then falls.

Yes. Releasing equity from an existing property to fund the deposit on a second home or buy-to-let is a common use of secured borrowing. The lender assessing the loan against your existing property will check affordability across both: the existing mortgage, the new secured borrowing, and any mortgage on the second property all count as commitments.

The using equity to buy another property guide covers the mechanics and considerations in full.

On the secured route, three to six weeks from application to funds is realistic for a straightforward case. The process involves a suitability assessment by the broker, a property valuation, full affordability and credit checks, and legal work to register the charge. More complex cases (adverse credit, self-employed income, non-standard property) can take longer.

Having your paperwork ready before you apply (payslips or accounts, bank statements, mortgage statement, and details of what the borrowing is for) is the single most effective way to keep the timeline short. The document checklist covers what you need.