Compare Homeowner Loans

Homeowners can get larger loans at lower rates.

  • Borrow £5k to £1m
  • Pay lower interest rates
  • 100% LTV / Bad Credit OK
  • Consolidate Your Debts
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Best Homeowner Loan Rates

  • Compare over 600 homeowner loans
  • Filter results to find your best loan options
  • Rates start at 6.30% APR (Rep. 6.4% APRC). There are loans for bad credit histories although at higher rates.

Compare homeowner loans to find your best deal:

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Representative example: Borrow £46,000 over 180 months at a rate of 8.4% per annum. Repay £499.13 per month. Total to repay £89,843.40 comprising the original loan, interest (£38,853.40), broker fee (£3,995) and lender fee (£995). Total overall cost 10.7% APRC.


What is a homeowner loan?

A homeowner loan is typically a larger-sized loan where the sum is borrowed against the value of your residential property. This means that the loan is secured and from the lender’s point of view this reduces their risk. While this does mean that if you fail to repay the debt your home could be repossessed it does mean there are some significant advantages too.

A homeowner loan could help you:

Homeowner loans are also called secured loans, home equity loans, second charge mortgages, or second mortgages.

They can be a very useful alternative to personal loans because of lower interest rates and the ability to help people who have a bad credit rating. The maximum amount that can be borrowed is determined by a number of factors.

Compare homeowner loans

A homeowner loan allows you to borrow against the free equity in your home i.e your home’s value less the amount you owe on your mortgage. Typically you can borrow more and at lower rates than with a personal loan.

To be able to obtain a homeowner loan you need to own your home with a mortgage.

Compare over 600 secured homeowner loans from across the UK including some which suit people with a bad credit history. We’ll help you find the right one.

How to get the best homeowner loan

As property is involved with the provision of this type of loan there is more underwriting and checking to be done by lenders than with a personal loan.  Typically it takes around 2-3 weeks to obtain a homeowner loan. If you need a loan very urgently then you must look at other options.

Homeowner loan lenders only work through brokers like Solution Loans, so to get the quotes you need to complete the simple enquiry form. Within a few minutes, our partner will then be in touch with the deals they have found for you.

Complete the Application

3: Complete Your Application

Complete your application which will include a property valuation, and credit & affordability checks.

Loan Paid Out

4: Get Your Money

Within two to three weeks all the processing of your application should have been completed and you will receive your loan.

What to consider when applying for a homeowner loan

When you borrow using one of these loans it is secured against your property. This means that should you have difficulties repaying the loan the lender can, as a worst-case, sell your property to recover the amount owing. So this is not a decision to take lightly. But this security does reassure the lender and does mean you may be able to borrow in situations where an unsecured loan would not be possible. We have access to lenders who in principle are able to lend very large sums of money. But the amount you can actually borrow depends on a number of criteria:

  • You must own the property you live in.
  • You must have a mortgage on your property – more info
  • Your property must be worth more than the balance of your mortgage – i.e. you must have equity in your property.
  • The lender will set a maximum loan value as a proportion of the value of your property (i.e. the max LTV) – more info
  • You must be able to demonstrate that you can afford the repayments for the loan value you need
  • Your credit history will have an influence on the lending decision.

See an example of how these “rules” are applied.

Is a homeowner loan right for me?

Homeowner loans aren’t as well known as either the remortgage or the personal loan, but they are becoming much more popular. So, why would you want to consider one?

Homeowner vs Personal Loans

Homeowner loans have these advantages over personal loans:

  • you could borrow a much larger sum (subject to there being sufficient equity in your home)
  • interest rates are often lower because of the security the home offers the lender
  • you can choose a longer repayment period to help reduce your monthly payments


Keep in mind that a personal loan does not require you to offer your home as security so your property is not at risk.

Homeowner Loans vs Remortgages

Secured loans offer these benefits compared to a remortgage:

  • there are no upfront fees when you apply
  • it can be quicker to arrange, maybe only 2-3 weeks
  • you won’t jeopardise your “unbeatable” mortgage rate
  • self-employment is more acceptable
  • any historical credit issues may not be so problematic

Alternatives to homeowner loans

If you’re not sure a homeowner loan is the right choice then here are some alternative forms of credit to consider. What you choose will depend on your objectives. There’s plenty of information via these links:

Get a homeowner loan with bad credit

If you own your home and have a mortgage then you may find that a bad credit homeowner loan is the way to obtain affordable credit if you have a credit problem. As part of the arrangement, the lender uses your home as security for the loan – which is why you need to own your home. This lowers the risk to the lender who should therefore offer you a lower APR% than they would for an unsecured loan.

We work with a very broad range of homeowner loan lenders and together they offer 600+ loan products many of which will accommodate you if you have a bad credit rating.

But before you go any further you should consider:

  • if an unsecured loan product would suit you better – you’re not putting any assets at risk
  • if you should be borrowing at all if you’ve had credit issues recently or foresee income/employment problems

The reason is that if you use your home as security and then fail to make repayments then the lender can take possession of your property and sell it to recover the debt.

It’s worth getting a quote to see how the repayment compare to an equivalent bad credit unsecured loan. Make sure that:

  • you only borrow the amount you need and no more
  • you don’t overextend the repayment period as you’ll end up paying more interest than you need to

Homeowner Loans Guide

If you’re uncertain which type of credit might suit you or you have a money problem then one of our guides may help you. We summarise each type of loan and their pros and cons, and address issues regarding debt and credit ratings.

Homeowner Loan FAQs

Answers to Your Homeowner Loan Questions

What are Homeowner Loans?

A homeowner loan is a loan where the lender requires an asset as security. In this case, the security is your property. So, to get one of these loans you need to own your home, hence the name. They are also called secured loans. Compared to an unsecured loan:

  • you can borrow larger sums e.g. the typical loan value is c.£30,000 but much larger loans are available
  • repayment can be made over an extended time frame e.g. 10 – 20 years, or more.
  • it may be easier to obtain a loan if you have a poor credit history (because of the security you provide the lender).
How do homeowner loans work?

Homeowner loans work differently to personal loans.

The terms of a personal loan (e.g. the loan amount and interest rate) depend on the lender’s view of the applicant’s probably ability to repay the loan over the next few years. The applicant’s credit history is very important to the lending decision as the loan is unsecured.

But with a homeowner loan, the applicant is offering security. This offsets the risk to the lender. The lender is still obliged to do credit checks and affordability assessments, but the security means that they can be more comfortable about offering a larger sum and at a lower rate than they could if the loan were unsecured. For the lender, the worst case is that they have to repossess the borrower’s house, although they would always try to avoid this.

How do I get a homeowner loan?

Homeowner loan lenders only work through brokers such as Solution Loans. To get a homeowner loan you should use our enquiry form or look at the deals available from our lenders and then apply. Take a look above at our four steps to getting a homeowner loan.

Are homeowner loans easy to get?

Homeowner loans are straightforward to get. After choosing your deal and completing the application form your property will need to be valued and then you will be made a full loan offer. If you accept it then you will receive the lump sum. The whole process takes two to three weeks.

How much will my homeowner loan cost?

The rate of interest will typically depend on:

  • the amount you want to borrow
  • the loan repayment period
  • your specific credit rating
  • the amount of free equity in your home – the larger this is relative to the amount you want to borrow the lower the interest rate should be.

Obviously, you need to consider not only the APR% but also the repayment period as these two things determine the total cost of borrowing. You can ask the lender for a number of quotes based on different loan amounts and repayment terms to see the effect and judge how it fits within your monthly budget.

Take a look at the deals available today and the rates on offer.

How quickly can I get the loan?

There is more paperwork required to set up a homeowner loan than a personal loan. The lender needs to check property ownership, get the property valued etc and this takes time. While lenders will always work as fast as they can, and have speeded up the process in recent years, you should expect a period of 2 – 3 weeks before you will receive your loan.

What are the criteria for getting a homeowner loan?

These are the general critieria you need to satisfy to be able to get one:

  • own the home you live in
  • have a mortgage on that property
  • have equity in the property (i.e. property value more than the mortgage balance outstanding)
  • ensure the loan you want is no more than the equity available and fits the LTV rules
  • demonstrate that you can afford the repayments

You will also get the best rates if you ensure your credit history is as correct as possible. There may be issues that you can fix quickly.

I have had financial problems. Will this affect my application?

If you have sufficient equity in your home, have a reliable income and can afford the repayments then a previous credit problem should not necessarily prevent you from getting a homeowner loan. Because this type of loan is secured on your property the lender has already offset much of the risk. We also have access to lenders who offer special bad credit plans.

However, as with all credit the better your credit rating the better the deals you are likely to be offered. So it makes sense to make sure that your credit file is as correct as possible.

Are homeowner loans safe?

Homeowner loans are safe so long as you always make your monthly repayments in full and on time. This is no different from any other form of credit. However, you must recognise the fact that you have offered your property as security and therefore the lender may repossess your home if you fail to satisfy the terms of the loan agreement.

Are there any disadvantages to using a homeowner loan?

While there can be significant advantages by choosing to use a homeowner loan for your finance the main thing to be aware of is that you are securing your loan on your property. This means that if you are unable to meet your repayment obligations to the lender in the worst case you could lose your home.

The other thing to be aware of is that if you have one of these loans and then want to move house things may be more complicated as a result.

What are the alternatives to a homeowner loan?

This depends on the amount you want to borrow. For sums less than £25,000 you could consider a personal loan and for anything more than that your main option will be to remortgage. If you are aged 55+ then you could also consider equity release.

Can I use my loan for anything I like?

You may think that these loans for homeowners have to be used on your home. This isn’t the case at all. You can use the loan to release the hidden equity in your home for anything you like (e.g. to consolidate debt, to make home improvements, or to purchase a car, etc).

Can it make sense to consolidate my existing debt?

The average unsecured personal debt in the UK stands at around £3200 per adult. That’s the average with many people owing considerably more than that! Unsecured personal debt includes credit cards, payday loans, car finance, overdrafts, and other unsecured loans. Much of this type of debt is very expensive to service – i.e. high monthly interest charges.

Do you have expensive unsecured debt? If you are living in a home you own and it is worth more than any mortgage you have on it then you may be able to consolidate the debt. This means swapping the expensive debt for a cheaper homeowner loan. The interest rate should be lower and you can, with care, potentially extend the repayment period to reduce your monthly costs even further. But keep in mind that you would be putting your home at risk if you failed to keep up the repayments on that loan.

Why do I need to have a mortgage?

Homeowner loans are known as “second charge” loans. They can only be used if there is already a “first charge” loan on the property i.e. a mortgage. If you own your property outright (i.e. don’t have a mortgage) then, by definition, you cannot obtain one of these loans. In this situation, the way to access the value of your property is through a remortgage.

Loan to Value (LTV) - how lenders set the upper loan limit

LTV defines the maximum lending (mortgages + secured loans) allowed against a property’s market value. It is the ratio of maximum lending value to the property value. e.g. if the LTV is 50% and the property value is £200,000 then the maximum lending permitted is £100,000.

Lenders have different homeowner loan products which have different maximum LTVs. As the maximum LTV increases, they tend to raise the interest rate on those loans. This is because the perceived risk has increased as they have to take into account what would happen if property prices were to fall.

How lending rules are applied

Here is an example of how LTV, mortgage values and a lender’s attitude to risk come together:

To manage their risk a lender could set their LTV on a loan to 75%. If your home is worth £250,000 then the maximum total lending against the property (first + second charge loans) would be £187,500. If you already have a mortgage of, say, £120,000 then this is deducted from the £187,500 giving a balance of £67,500 available to play with.

But the lender may not offer you £67,500 even if the product’s terms might suggest it. The lender must assess the affordability of loan repayments, and also judge your credit risk profile by taking into account your credit history. This is all part of their responsible lending policy. All lenders have a duty to lend responsibly.



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Written/Reviewed by: Amanda Gillam

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