Guide to homeowner loans

  • Homeowner loans are secured against your property
  • Rates are likely to be more attractive than for personal loans, but your home’s at more of a risk of repossession
  • The amount you can borrow, term and interest rate depend on property equity, credit history and personal circumstances
  • Homeowner loans are typically repaid over five-to-25 years and are for over £15,000, but such figures are not definitive

Homeowner loans are debts that are secured against your property and, as such, they are only available to homeowners with equity.
These products could also be called secured loans, although technically the latter could be secured against another asset, such as a car.

You’re likely to need a decent credit history to qualify for a homeowner loan, although lenders may be less fussy than with an unsecured loan.


It’s typical for homeowner loans to be considered by people looking to borrow larger sums – perhaps between £15,000 and £100,000 – and for the loan term to be over a considerable period – perhaps between five and 25 years.

None of these figures are set in stone, though – the loan amount and/or term could be higher or lower, depending on circumstances.

The amount of equity you have in a property, your personal circumstances and your credit history will all play a part in determining the deals you’ll be offered.

Homeowner loans v unsecured loans

The reason that lenders are less fussy about your credit history when taking out homeowner loans as opposed to unsecured ones is because they have some certainty that the debt will be repaid as the borrowing is tied to your home.

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