Secured loans
Homeowner loans are a form of secured borrowing that uses property equity as security. Learn how they differ from unsecured personal loans and what to check before applying.
Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or other loans secured against it.
Homeowner loans are aimed at people who own property and want to borrow using equity as security. They sit in the broader secured-loan category and are often used when applicants need a larger amount than an unsecured personal loan may offer.
Because the loan is secured against your home, missed repayments can have more serious consequences than with unsecured borrowing. Treat homeowner loans as a major financial decision, not a shortcut.
Last reviewed: 10 September 2026
A homeowner loan is typically a fixed-sum loan secured against residential property you own. The lender registers a charge, often behind an existing mortgage. You repay in instalments over an agreed term.
Product names vary. Some are marketed as homeowner loans, others as second charge mortgages or secured personal loans. Always read how the security works in the agreement rather than relying on the marketing label alone.
If you are already finding repayments difficult, seeking free regulated debt advice may be more appropriate than taking on new secured borrowing.
Homeowner loans can involve arrangement fees, valuation fees, legal costs and early repayment charges. Adding fees to the loan increases the balance you repay. Compare the total repayable and the APR together with any broker fees.
Timelines vary. Do not assume a quick decision, and avoid making multiple full applications in a short period without checking whether hard searches will be recorded.
Remortgaging replaces or changes your main mortgage and can release equity in one product. A separate homeowner or second-charge loan leaves the first mortgage in place and adds another charge. Neither route is automatically better — compare rates, fees, early repayment charges on the existing mortgage, and how long you plan to stay in the property.
FAQs
General UK guidance — not personalised advice.
Related
Continue with connected borrowing journeys.
Property-backed borrowing risks, eligibility and alternatives.
ViewHow a second charge works alongside your existing mortgage.
ViewCompare remortgage journeys if releasing equity via your main mortgage.
ViewUnsecured alternatives that do not use your home as security.
ViewA homeowner loan is one path. Remortgaging or an unsecured personal loan may suit some situations better.