Compare Homeowner Loans

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  • Competitive and fixed interest rates available

  • Borrow between £3,000 and £500,000

  • Repay your loan between 1 and 30 years

  • Compare secured loans from trusted UK providers

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Loan amount


Repayment term

10 years


Home Improvements
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Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a loan or any other debt secured on it. Show representative example

Some examples

Here are some example quotes from UK loan providers based on what you've told us. Your Norton Finance advisor will give you tailored recommendations based on your circumstances - complete the enquiry form

    • Pepper logo


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      • Total Repayments
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    • Shawbrook Bank logo

      Shawbrook Bank

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      • Total Repayments
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    • West One logo

      West One

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      • Monthly Repayments
    • Step One logo

      Step One

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    • Oplo logo


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    • Together logo


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    • United Trust Bank logo

      United Trust Bank

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    • Norton Home Loans logo

      Norton Home Loans

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    • Spring Finance logo

      Spring Finance

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    • Central Trust logo

      Central Trust

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    • Equifinance logo


      • Initial Rate
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    • Lesley Stephen and Co logo

      Lesley Stephen and Co

      • Initial Rate
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    • Evolution logo


      • Initial Rate
      • Total Repayments
      • Monthly Repayments

Please note: Loans displayed have a minimum term of 12 months and a maximum term of 300 months. Maximum APRC charged 49.9%. Rates displayed are the lowest available for each lender based on 60% loan-to-value (LTV).

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.

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

This secured loans comparison and quote service is presented via our partnership with Norton Finance. Data provided is submitted directly to Norton Finance. Nerdwallet Ltd does not form part of the service beyond this introduction.

Norton Finance. Registered at Norton House, Mansfield Road, Rotherham, South Yorkshire, S60 2DR. Registered in England & Wales No 5995692. Authorised and regulated by the Financial Conduct Authority no. 589554.

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Information written by Holly Bennett Last updated on 11 November 2022.

What is a homeowner loan?

A homeowner loan, also known as a second charge mortgage, is a type of borrowing that’s secured against your home. It works as a separate loan to your primary mortgage, but both mortgage loans are secured against one property.

Homeowner loans can be used for all sorts of purposes, including funding home improvements, consolidating debt, making major purchases or even as a deposit for a new property.

Using your home as security for the loan reduces the lender’s risk, but increases yours as the lender could sell the property to pay off the balance if you stop repaying the loan.

What is a secured loan?

A secured loan uses a high-value asset that you fully or partly own as security for the money you borrow. This is usually a property, but some loans might use a car or other asset as collateral.

Using your home as security reduces the lender's risk of lending to you, so you may find secured loans offer lower interest rates than loans that don’t use collateral. But the risk to you is that the lender could take steps to recover its costs through selling your home if you don’t pay it back.

» MORE: How secured loans work

How do homeowner loans work?

When you apply for a homeowner loan, the lender will carry out checks to confirm the value of your property. It will also run credit history and affordability checks. Along with how much of your home you own, these checks will affect its decision, the amount you could borrow and the terms it offers.

If you choose to take out the loan, you agree to pay back the amount you have borrowed plus interest in monthly instalments, plus any fees due, over a set period of time.

Some homeowner loans have variable rather than fixed interest rates, which means your monthly payments could change. The lender should make this clear in its loan information, but ask if you’re unsure.

Homeowner loans vs unsecured loans

Unsecured loans require no collateral, so you don’t use your home as security. This can be less risky for you than a secured loan, but you will usually:

  • be offered lower maximum loan amounts
  • need to have a good credit score
  • be offered higher interest rates

If you are unable to pay any type of loan, it can affect your credit rating. And while your home isn’t used as security with an unsecured loan, you may be charged a fee for late or missed payments and the lender could try to get their money back by taking you to court. But this is a last resort and if you keep up your repayments this won’t happen.

» MORE: The difference between secured and unsecured loans

Homeowner loans vs borrowing more on your existing mortgage

A homeowner loan is a second mortgage in addition to your first secured mortgage loan. So it means securing a second, separate loan against the same property, usually with a different lender and interest rate.

Further advance

A further advance is where you ask to borrow more money on your existing repayment mortgage from your current mortgage lender. This will be at a different, and possibly a higher rate to your current deal. You should be confident that you can afford the increased payments. The lender will check the affordability of the loan as part of the process. You may also consider switching to a new mortgage rate at the same time, called a product transfer, if the time is right.


It’s possible to borrow more by remortgaging to a new deal with a different lender or with your existing lender. This would mean moving your current mortgage to a new rate and increasing the loan. Which route you choose can depend on where you are in your current mortgage deal and also whether your finances are in good shape or have worsened.

A further advance may come with better terms and lower interest rates than a homeowner loan, but it makes sense to compare your options based on your circumstances ? and across lenders. For example, you may find that there is more flexibility with homeowner loans if you have bad credit than if you are looking to remortgage.

Don’t forget to factor in fees and charges for changing your mortgage.

» MORE: Compare remortgages

What is home equity?

Home equity is how much of your property that you own. You can work this out as the value of your home minus the loan amount still outstanding. This can increase over time as the value of a home increases and, for a repayment mortgage, as you pay off the capital off as well as the interest.

For example, if your property is worth £300,000 and you have an outstanding mortgage of £120,000. This would mean you have £180,000 worth of equity in your house.

Home equity is important for homeowner loans as it helps lenders decide how much you can borrow and at what rate. The loan itself is secured against the amount of the property you own.

» MORE: Why does house equity matter?

Interest rates for homeowner loans

Homeowner loans are available with two interest rates:

  • Variable interest rates: This can change over the time you have the loan. So you would need to be comfortable with your payments going up as well as down, and be able to afford this. The initial rate offered might be lower than a fixed-rate loan.
  • Fixed interest rates: This is the more predictable rate, as your monthly payments wouldn’t change over the lifetime of the loan. Once your fixed-rate deal ends, you may need to pay a higher monthly payment, depending on what deals are available.

Be clear about how you will be charged interest and what the interest rate the lender is offering will cost you overall. The amount you want to borrow may also affect the interest rate you are offered.

How much can you borrow against your home?

The amount you might be able to borrow can depend on:

  • How much of your home you own outright: You will only be able to borrow up to a certain percentage of this.
  • The lender’s criteria and eligibility checks: This can vary across providers.
  • Your financial circumstances: The lender will find out more about this through credit and affordability checks.

Borrowing amounts for homeowner loans tend to range between £10,000 and £500,000.

Think carefully about how much you want to borrow and what affordable repayments would be for you before you apply. Then look at the total overall cost of the loan, over the number of years you would be paying it off.

Costs and fees that come with homeowner loans

As well as the interest rate, also factor in any fees and charges when calculating the overall cost of a homeowner loan. Similar to a primary mortgage, this might include arrangement, valuation and legal fees, for example.

If you use a broker registered to find and arrange a homeowner loan, they may charge a fee for their advice and for setting up the loan. This might be a fixed sum or a percentage of the loan amount.

When you compare homeowner loans, look at the representative total cost, known as the annual percentage rate (APR), which includes interest and fees.

» COMPARE: Second charge mortgages

How do you pay off a homeowner loan?

You pay off a homeowner loan in monthly instalments. Your payments repay the amount you borrowed with the interest on top of that, for the agreed term, plus any fees and charges.

If you want to pay a loan off early to save money in interest over time, you can. But first check if there are early repayment charges and how much these would be before you go ahead.

Pros and cons of homeowner loans

It’s a big decision to secure a loan against your home, so it makes sense to give it careful thought before going ahead. Here are some of the potential pros and cons:


  • There may be large sums of money available to borrow.
  • You may be considered even if you have a poor credit rating.
  • Interest rates may be lower than for unsecured loans.
  • Longer loan terms may be available.
  • You don’t have to exit your existing mortgage deal, as it’s a separate loan.
  • It can offer a separate way to borrow if you have an interest-only mortgage and increasing your current mortgage loan isn’t an option.


  • Your home may be repossessed if you don’t keep up repayments.
  • You can usually only get this type of loan through a broker.
  • There are fees and charges to consider.
  • The second charge lender takes second priority behind the first mortgage lender, so it may charge a higher interest rate to reflect that risk.
  • You will have two mortgage payments to consider.
  • It might affect the terms lenders offer if you remortgage in the future.

» COMPARE: Does a secured loan affect remortgaging?

The types of homeowner loans

Homeowner loans are second charge mortgages, where you take out a second separate loan on top of your existing mortgage and use the same property as collateral.

Other secured loans for homeowners who want to raise money include:

  • Bridging loans: These can be used to bridge the gap between selling and buying a property and are a short-term form of borrowing that you pay back once the funds are available.
  • Debt consolidation loans: This is where you combine all your debts into one, to reduce how much interest you pay and lower your monthly repayments. However, you may end up paying more over the long term with added interest.
  • Bad credit loans: Not having a good credit score can reduce your options for borrowing. Some lenders will accept people with bad credit but will charge higher interest rates to offset the risk. A secured bad credit loan may have better terms than an unsecured loan because you are using your property as collateral.
  • Remortgaging: This involves asking to increase your existing mortgage loan with your current lender or remortgaging to borrow more. Consider possible fees for getting a new mortgage, especially if it would mean leaving your mortgage deal ahead of time.

» MORE: How do early repayment charges work?

Is a homeowner loan right for me?

Like most personal finance decisions, whether a homeowner loan is right for you depends on your specific circumstances. Consider how much you want to borrow and for how long, and whether other potentially cheaper ways of borrowing are accessible to you.

You will need to meet the lender’s criteria, and your credit history and whether you can afford the loan will also play a part. How much of your home you own will also have an impact on the decision and the terms you are offered.

It’s key that you are confident that you can afford the repayments, as you risk losing your home if you can’t. If you’re not sure which option is right for you, speak to a financial adviser or broker, but ask about any fees they charge before going ahead.

Can I get a homeowner loan with a bad credit history?

It can be possible to get a homeowner loan if you have a limited or poor credit history, though it might limit your options and affect the terms you’re offered.

As lenders will have your home as collateral for the loan, it helps reduce the risk to them. So they may place less emphasis on your credit score than they might if you were applying for an unsecured loan. Factors such as other debts, your income and how much of your home you own will be considered too.

» MORE: Can I get a homeowner loan with bad credit?

How to find and compare homeowner loans

To compare homeowner loans, just go to the top if this page and fill in:

  • the loan amount
  • what you plan to use the money for
  • how long you want to pay off

When you use our eligibility tool, our partner broker Norton Finance will work to match you with providers. From the results, you can compare features between loans, such as the representative APRC, loan amounts available and the term lengths on offer.

Using this search won’t affect your credit score.

What to consider before taking out a homeowner loan

Be clear about the risk of taking out a secured loan before you go ahead.

Make sure that you are:

  • able to afford the repayments
  • clear whether it’s variable rate or fixed rate interest
  • aware of any fees and charges for the loan, such as arrangement or broker fees
  • eligible for the loan – a broker can help to make sure this is the case, though do your own research too

Homeowner Loans FAQs

Can I get an unsecured homeowner loan?

Homeowner loans are usually secured loans and are also called second charge mortgages. This means your property is used as collateral for the loan, so you must be a homeowner.

You could consider getting an unsecured loan, perhaps to help pay for home improvements, for example. Unsecured usually offer lower loan amounts over shorter terms, and you typically need a good credit score, but you don't need to put up a high-value asset as security.

There are unsecured guarantor loans where a nominated guarantor agrees to pay the loan if the borrower can’t. This might be because you have a bad credit history and struggle to be accepted for lending. The guarantor will usually need to be a homeowner to add confidence to the lender, but if it’s an unsecured loan it won’t be secured against their property.

» COMPARE: Guarantor loans

Are homeowner loans easy to get?

If you meet the lender’s criteria, the application could be quite straightforward. But you will need to pass affordability and credit checks, and supply the necessary information such as proof of ID and proof of income.

Using a broker could help make sure you only apply for loans you are eligible for, and they can also help advise on the application process. Some brokers charge a fee for their services when a loan is agreed, so bear this in mind. These fees can usually either be added to the loan amount or paid up front.

Am I eligible for a homeowner loan?

If you own your home and have some equity in it, you may be considered for a homeowner loan. Your credit history, the value of your home and your financial circumstances (such as your income and any debts) will all come into a lender’s decision.

But lenders criteria can vary, so check the basic eligibility requirements before you apply. When you get a quote with our partner Norton Finance, you can see the features and requirements of each lender. Using a broker can also make sure you only apply for loans you are likely to be eligible for.

How do I apply for a homeowner loan?

First, check that you are eligible for the loan. This helps prevent applying for too many loans over a short period of time, which can be a red flag for future lenders.

When you apply, you will need to supply some basic personal and financial information. The lender or broker should explain clearly what this will include. As well as proof of ID and address, this might include a mortgage statement and recent payslips, bank statements or your latest accounts.

» MORE: Loan application tips

How long does it take to get a homeowner loan?

You’re likely to be looking at anything from a week to a month from start to finish, but it may take longer, depending on the lender and your own circumstances.

You’ll need to complete the admin on time, including supplying financial details, such as your bank details.

Getting a secured loan is a big decision, so take the time you need to compare your options and make sure it’s affordable for you.

What are alternatives to homeowner loans?

Other options you might consider will depend on your circumstances and finances, along with how much you want to borrow. They might include:

  • Personal unsecured loans: You don’t need to put up an asset, such as your home, as collateral with an unsecured loan. You will usually need a good credit score and amounts tend not to be more than £25,000. You may also find that interest rates are higher than they are for secured loans.
  • Remortgaging: You might consider asking to borrow more on your current mortgage or remortgage to borrow more with a completely new lender to raise the money you need. This will partly depend on where you are in your current mortgage deal. Make any remortgaging charges and fees, such as arrangement fees, and any early repayment charge if you leave your mortgage deal ahead of time, part of your calculations.

For short-term borrowing of small amounts, you might consider a bank account overdraft or using a credit card if you’re in a position to pay off the balance in full before interest is charged.

WARNING: Think carefully before securing other debts against your home. Your home may be repossessed if you don’t keep up repayments on a loan or any other debt secured on it.

About the author:

Holly champions clear, jargon-free writing. She’s been creating finance content for leading organisations for over 10 years. Read more