Homeowner Loans
Find the best rates
Check your eligibility for a homeowner loan in minutes
£5,000 to £500,000
A quick eligibility check helps you understand what is likely to be available against your property. Checking will not harm your credit score, and there is no obligation to proceed at any stage.
Check your eligibility
A short form captures the essentials: how much you want to borrow, your property value, outstanding mortgage balance, income, and credit situation. It takes around two minutes to complete, and there is no impact on your credit score at this stage.
See your options
Based on your equity position and profile, we connect you with brokers and lenders who specialise in lending to homeowners. The route may be a secured loan, a remortgage, or a further advance depending on your circumstances. You are not committing to anything at this point.
Choose and apply
Review the options available and decide whether to proceed with a formal application. A broker will guide you through the valuation, legal work, and completion. Funds are typically released within two to four weeks for secured loans.
If you own property with equity, four main products let you raise funds against it. Each works differently. The right one depends on how much you need, whether your current mortgage deal has early repayment charges, whether you want a single payment or two, and whether monthly repayments fit your situation. All four use your home as security.
Secured loan (second charge mortgage)
A lump sum repaid in fixed monthly instalments over 3 to 25 years, secured against your property as a second charge behind your existing mortgage. You keep your current mortgage deal untouched. Fixed rate and fixed monthly payment. £5,000 to £500,000 typically available. Property valuation required.
Second charge mortgages →Remortgage with additional borrowing
Replace your existing mortgage with a new, larger one and release the difference as cash. This route only makes sense if your current mortgage deal allows it without significant early repayment charges, or if your fixed period is ending. One monthly payment covers everything. Triggers full mortgage underwriting.
Further advance from your mortgage lender
Ask your current mortgage lender for additional borrowing on top of your existing mortgage. This avoids a second set of legal fees and keeps everything with one provider. The rate is set by your lender with no market competition. Not all lenders offer further advances.
Equity release
Release a tax-free lump sum or regular payments from the equity in your home without making monthly repayments. The loan and rolled-up interest are repaid when the property is sold, typically when you move into long-term care or pass away. Available to homeowners aged 55 and over. A no-negative-equity guarantee means you will never owe more than your home is worth.
Equity release explained →Borrowing against your home gives access to larger amounts at lower rates than unsecured lending, but it puts your property at risk. The three scenarios below describe the circumstances in which it most often proves to be the appropriate route.
Larger amounts
Unsecured personal loans typically cap at £25,000 to £50,000. Above that level, or for borrowers whose credit profile limits their unsecured options, a secured loan against property equity provides access to higher amounts with longer terms and lower rates. The trade-off is the requirement for property security.
Major renovations
Extensions, loft conversions, and structural renovations often cost £30,000 to £100,000 or more. Borrowing against the property that benefits from the improvement is a logical match. The project increases the property value, and the longer term keeps the monthly payment manageable alongside the mortgage.
Debt consolidation
Credit cards at 20 to 30 percent and overdrafts at 35 to 40 percent cost significantly more than a secured loan at typical rates. Consolidating into a single secured payment can reduce the monthly cost and total interest, provided the new term does not stretch the debt so far that the total cost increases.
Your home may be at risk if you do not keep up repayments on a loan secured against it. Borrowing against your home converts unsecured risk (credit file damage, court action) into secured risk (potential repossession). This trade-off is only appropriate when the lower rate, higher amount, or longer term genuinely serves your financial position. If you are unsure, free guidance is available from MoneyHelper.
Eligibility for borrowing against your property depends on how much equity you have, your income, and your credit profile. The conditions below are the ones most lenders share.
You own a property with equity
The property must be worth more than the outstanding mortgage. Most lenders require a combined loan-to-value (LTV) below 80 to 85 percent, meaning you need at least 15 to 20 percent equity after the new borrowing is added. Some specialist lenders go higher.
You have a regular income
Lenders assess whether you can sustain the new monthly payment alongside your existing mortgage and other commitments. Employed, self-employed, and pension income are all accepted, though documentation requirements vary.
The combined LTV is within lender limits
The lender looks at the total borrowing against the property: your existing mortgage plus the new loan. If the combined figure exceeds their LTV threshold, the amount available is reduced. Checking your equity position first avoids wasted applications.
Your credit profile supports the application
Most secured lenders check your credit file, but the criteria are often more flexible than unsecured lending because the property provides security. Borrowers with adverse credit, including missed payments and CCJs, can still access secured loans through specialist lenders at higher rates.
Your existing mortgage lender consents
A second charge secured loan requires the consent of your first charge mortgage lender. This is a standard administrative step handled by the broker and solicitor. It is rarely refused, but it is a condition of the process.
Your home is at risk
All homeowner loan products use your property as security. If you do not keep up repayments, the lender can apply to the court for repossession. This is the fundamental trade-off for the lower rate and higher amount available through secured lending.
For homeowners, the first question is not which lender but which product. A secured loan, remortgage, and further advance can all access the same equity, but the total cost, monthly commitment, and process differ significantly.
Secured loan vs remortgage
A secured loan leaves your existing mortgage untouched, which matters if you have a competitive fixed rate. A remortgage replaces the whole thing, which may trigger early repayment charges on your current deal. Compare the total cost of both routes, including any ERCs, before deciding.
Second charge vs further advance
A further advance from your existing mortgage lender is simpler and avoids a second set of legal fees, but the rate is set by one lender with no competition. A second charge secured loan opens the market to specialist lenders who may offer a better rate. Comparing both is the only way to know.
Compare total cost, not monthly payment
A longer term reduces the monthly figure but increases the total interest paid. A second charge loan with broker and legal fees may cost more upfront but less over the full term than a remortgage that extends the repayment period. The total amount repayable, including all fees, is the figure that tells you the true cost of each option.
Find the right homeowner loan
Check your eligibility in minutes. No credit score impact at this stage.
Check eligibilitySix tools to model costs, compare routes, and check your equity position. Every figure is illustrative. Browse all tools
Secured loan calculator
Model loan amount, term, and illustrative rate to see estimated monthly repayments and total cost.
Open calculator →LTV and equity calculator
Enter your property value and mortgage balance to see the equity available and where you sit against LTV thresholds.
Open calculator →Secured vs unsecured threshold tool
See the point at which borrowing starts to make more sense on a secured term than an unsecured one.
Open tool →Second charge vs further advance comparator
Compare a second charge loan against a further advance to see which produces the lower total cost.
Open tool →Secured loan vs remortgage comparator
Compare the total cost of raising funds through a second charge versus remortgaging the full balance.
Open comparator →Monthly affordability checker
Test whether the new monthly payment fits alongside your mortgage and existing commitments.
Open tool →Select a topic to understand how borrowing against your home works before you apply.
What is a homeowner loan?
A homeowner loan is any loan secured against a residential property you own. The term is used broadly in the market, but it typically refers to a second charge mortgage: a fixed-term loan that sits behind your existing mortgage and is repaid in monthly instalments over 3 to 25 years. It is sometimes called a secured loan, a second charge loan, or a homeowner secured loan. They are all the same product.
The property acts as security for the lender. This means the lender has the right to apply to the court for repossession if you do not keep up repayments. In return, the security allows lenders to offer larger amounts at lower rates and over longer terms than unsecured personal loans. The amount you can borrow depends primarily on how much equity you have in the property and whether you can afford the new payment alongside your mortgage.
Secured against your property
The lender places a legal charge on your property. If you do not repay, the lender can ultimately seek repossession through the court. This is the fundamental trade-off for the lower rate and higher amount available.
Sits behind your mortgage
A second charge loan does not replace your mortgage. It sits alongside it. You continue to pay your mortgage as normal and make a separate monthly payment on the secured loan. Your mortgage lender must consent to the second charge, which is a standard process.
Fixed rate, fixed term
Most homeowner loans have a fixed rate for the full term, which means the monthly payment stays the same throughout. This makes budgeting straightforward and removes the risk of rate increases during the repayment period.
Advised process through a broker
Homeowner loans are regulated by the FCA and must be arranged through an advised process. A specialist broker assesses suitability, recommends the right product, and handles the lender matching, valuation, and legal steps.
How equity determines what you can borrow
Equity is the difference between your property's current market value and what you still owe on the mortgage. It represents the portion of the property you own outright, and it is the foundation of all homeowner lending. A property valued at £300,000 with a £200,000 mortgage has £100,000 of equity. Not all of that equity is available to borrow against, because lenders set a maximum combined loan-to-value (LTV) ratio, typically between 75 and 85 percent.
The LTV and equity calculator shows your current position and what is likely to be available after the new borrowing is added. If you are close to the LTV limit, the amount available may be less than you need, or the rate may be higher because the lender's exposure is greater.
Calculate your equity
Property value minus mortgage balance equals your equity. A £350,000 property with a £220,000 mortgage has £130,000 of equity. This is the starting point for any homeowner loan calculation.
Understand the LTV limit
If a lender's maximum combined LTV is 80 percent, the total of your mortgage plus the new loan cannot exceed 80 percent of the property value. On a £350,000 property, that is £280,000. With a £220,000 mortgage, the maximum new loan would be £60,000.
More equity means better terms
A lower LTV typically means a lower rate, because the lender's risk is smaller relative to the property value. Borrowers with 40 percent or more equity usually access the most competitive rates. Those closer to 85 percent LTV pay more and have a narrower lender panel.
Comparing the three borrowing routes
Second charge, remortgage, and further advance all access the same equity, but the mechanics, costs, and implications differ. The right route depends on your current mortgage deal, how much you need, and whether keeping your existing rate matters. The tools below let you compare the options side by side.
Second charge: keeps your existing deal
A second charge leaves your current mortgage untouched. This matters most if you have a competitive fixed rate that you would lose by remortgaging, or if early repayment charges (ERCs) make replacing the mortgage expensive. You end up with two monthly payments: the mortgage and the secured loan. The combined total is what matters for affordability.
Remortgage: one payment, one rate
Remortgaging replaces your existing mortgage with a new, larger one. It works best when your fixed period is ending (no ERCs), or when rates have fallen enough that a new deal at the higher balance is still cheaper than keeping the existing mortgage and adding a second charge. You end up with one monthly payment covering everything.
Further advance: simplest, but no competition
A further advance from your existing mortgage lender avoids a second set of legal fees and keeps everything with one provider. The downside is that the rate is set by one lender with no competition. It is often worth comparing the further advance offer against a second charge quote to see which produces the lower total cost over the full term.
Consider a HELOC as the fourth route. A home equity line of credit (HELOC) lets you draw down funds as needed rather than taking a single lump sum. If you are not sure exactly how much you need, or if the project costs will arrive in stages, a HELOC avoids paying interest on money you are not yet using. Our HELOC page covers how it works.
Understanding costs and fees
The interest rate is only part of the cost of a homeowner loan. Arrangement fees, broker fees, valuation fees, and legal fees all add to the total amount payable. Some are deducted from the loan advance; others are paid upfront. Understanding the full cost picture before you apply ensures there are no surprises at completion.
Interest rate and APR
The interest rate determines the monthly payment and total interest cost. The APR includes compulsory fees and provides a like-for-like comparison between products. A lower headline rate with high fees can cost more than a slightly higher rate with no fees. The total amount repayable is the clearest single number to compare.
Broker fee
Most secured loan brokers charge a fee, typically added to the loan. This is disclosed before the application proceeds. A good broker justifies the fee by accessing a wider lender panel and securing better terms than a borrower could find directly. The fee should be factored into the total cost comparison.
Valuation and legal fees
The lender requires a property valuation, typically £150 to £400 depending on property value. Legal work to register the charge costs £300 to £600. Some lenders absorb one or both of these into the arrangement. Others charge them separately. Ask for a full fee breakdown before proceeding.
Early repayment charges
Some secured loans have early repayment charges (ERCs) during an initial fixed period, typically one to five years. If you are likely to repay early, whether through a house sale, refinance, or lump sum, check the ERC structure before committing. Not all secured loans carry ERCs.
Risks and protections
Borrowing against your home carries real risk. Understanding both the risk and the protections available helps you make an informed decision. Secured lending is regulated by the FCA, and the advised process is specifically designed to ensure the loan is suitable for your circumstances before it is arranged.
Your home is at risk
If you do not keep up repayments, the lender can apply to the court for a possession order. This does not happen immediately. Lenders must follow the FCA's conduct rules, which require them to treat customers in financial difficulty fairly and explore alternatives before pursuing repossession. But the right exists, and it is the fundamental risk of secured borrowing.
The advised process protects you
Homeowner loans must be arranged through an advised process under FCA rules. The broker must assess whether the loan is suitable for your circumstances, not just whether the lender will approve it. This includes checking that the repayment is affordable, that the purpose makes financial sense, and that you understand the risk to your property. If the loan is not suitable, the broker should not recommend it.
Ready to check what you could borrow against your home?
Check eligibilityHow much can I borrow with a homeowner loan?
The amount depends on your equity, income, and credit profile. Most secured loan lenders offer between £5,000 and £500,000. The practical limit for your property is set by the combined LTV: your existing mortgage plus the new loan cannot exceed the lender's maximum, typically 75 to 85 percent of the property value.
For example, a property worth £400,000 with a £250,000 mortgage has £150,000 of equity. At an 80 percent LTV limit, the maximum combined borrowing is £320,000, meaning you could borrow up to £70,000 through a second charge. Income and credit profile then determine whether the lender will approve that amount. The LTV and equity calculator shows your specific position.
Will a homeowner loan affect my existing mortgage?
A second charge secured loan does not change your existing mortgage. Your mortgage rate, term, and monthly payment remain exactly the same. The secured loan sits alongside the mortgage as a separate agreement with a separate lender and a separate monthly payment.
Your mortgage lender must give consent for the second charge to be registered, which is a standard legal step handled by the solicitor. Consent is very rarely refused. The mortgage lender does not reassess your mortgage terms as part of the consent process. Our secured loan vs remortgage comparator helps you decide whether keeping your existing deal or replacing it is the better route.
How long does a homeowner loan take?
Most second charge secured loans complete within two to four weeks from the point of full application. The main stages are the application itself, the property valuation, the lender's underwriting decision, and the legal work to register the charge. Delays are most commonly caused by missing documentation, slow valuation bookings, or mortgage lender consent taking longer than usual.
Having all your documents ready before the application, including proof of income, identity, address, and a recent mortgage statement, removes the most common cause of delay. Remortgages typically take four to eight weeks because the process involves redeeming the existing mortgage, which adds legal steps. Our how long does a secured loan take guide covers each stage in detail.
Can I get a homeowner loan with bad credit?
Yes. Secured lending is generally more accessible for borrowers with adverse credit than unsecured lending, because the property provides security that reduces the lender's risk. Specialist secured loan lenders routinely consider applications with missed payments, defaults, CCJs, and even recent debt management plans.
The rate will be higher than for a borrower with a clean file, and the LTV limit may be lower, which means you need more equity relative to the amount borrowed. A specialist broker can identify which lenders are most suitable for your specific credit profile and match you accordingly. Our bad credit loans page covers the options in more detail.
What is the difference between a second charge and a further advance?
A second charge is a separate loan from a separate lender, secured against your property alongside your existing mortgage. A further advance is additional borrowing from your existing mortgage lender, added to your current mortgage arrangement.
The further advance is simpler because it keeps everything with one provider and avoids separate legal fees. The second charge opens the market to specialist lenders, which often produces a more competitive rate because there is genuine competition. The only way to know which is better for your situation is to compare both. The second charge vs further advance comparator models both side by side.
What happens if I cannot repay?
If you fall behind on repayments, the lender must follow FCA conduct rules designed to treat borrowers in financial difficulty fairly. This means contacting you, understanding your circumstances, and exploring options before taking any enforcement action. Options can include temporary payment reductions, a payment holiday, or extending the term to reduce the monthly amount.
Repossession is a last resort, not a first response. The lender must apply to the court, and the court considers whether reasonable alternatives have been explored. However, the right to pursue repossession is real, and it is the fundamental trade-off of secured borrowing. If you are concerned about your ability to meet payments, StepChange provides free, confidential debt advice and can help you assess your position before it reaches a critical point.
If you are unsure whether borrowing against your home is the right decision, or if existing financial commitments are a concern, free guidance is available.
MoneyHelper is a free government-backed service offering impartial guidance on mortgages, secured lending, and borrowing decisions of all kinds.
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StepChange provides free debt advice. If you are considering borrowing to consolidate existing debts, speaking to them first is always worthwhile.
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