Borrow against your home equity at up to 50% lower broker fees.
Use the equity in your home to borrow £10k–£1.5m. Keep your existing mortgage. Consolidate debts, fund home improvements or raise capital. We compare thousands of plans to find your best rate.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Your Home Equity
Example: £450,000 property
What is a homeowner loan?
A homeowner loan (also called a second charge mortgage or secured loan) lets you borrow money using the equity in your home as security. Because the loan is backed by your property, lenders can offer larger sums at lower rates than unsecured alternatives.
Crucially, a homeowner loan sits alongside your existing mortgage. You keep your current deal intact. No remortgaging, no early repayment charges, no losing a competitive rate.
This makes it the go-to option for homeowners who want to raise funds without disturbing a mortgage they're happy with. Consolidating debts, funding improvements, raising capital. A homeowner loan keeps things clean and separate.
It's also more accessible than many people expect. Lenders assess your equity and affordability, which means options are often available even when credit history isn't perfect.
Important: Your home may be repossessed if you do not keep up repayments on your mortgage. Make sure the monthly payments are comfortable for you before going ahead.
Homeowner loans are regulated by the Financial Conduct Authority (FCA). Applications are handled by Loan.co.uk, which is authorised and regulated by the FCA, so you're protected by strict rules on fair treatment, clear information, and responsible lending.
Homeowner Loan vs Personal Loan
How they compare
Homeowner Loan
Personal Loan
For homeowners borrowing larger amounts over longer terms
What you can use a homeowner loan for
Your equity, your choice. Homeowner loans are flexible, so you can use the funds for almost any purpose. Here are the most popular reasons people borrow.
Home improvements
New kitchen, extension, loft conversion, or full renovation. Use your equity to increase your property's value and enjoy the space you've always wanted.
Debt consolidation
Combine credit cards, loans, and overdrafts into one lower monthly payment. Simplify your finances and reduce the interest you're paying.
Major purchases
New car, caravan, boat, or other big-ticket items. Spread the cost over a longer term and keep monthly payments manageable.
Property deposit
Raise a deposit for a buy-to-let or second property. Release the equity sitting in your current home and put it to work in another.
Tax bills
Unexpected HMRC demand? Spread the cost over monthly payments instead of paying it all at once. Avoid penalties and protect your cash flow.
Weddings & events
Make your special day everything you dreamed of. Spread the cost of a wedding, milestone birthday, or family celebration without the stress.
Other reasons homeowners borrow:
Why a homeowner loan makes sense
Owning your home puts you in a stronger position to borrow. Here's why a homeowner loan often outperforms the alternatives.
Borrow significantly more
Homeowner loans go up to £1.5 million, depending on your equity. Personal loans cap at around £25,000, and they rarely offer the rates that come with security.
Lower rates than unsecured loans
The security of your property means lenders price risk lower. You pay less each month compared to an equivalent personal loan or credit card balance.
Keep your existing mortgage
A homeowner loan runs alongside your current mortgage. No remortgaging, no early repayment charges, no giving up a competitive rate you've worked hard to secure.
Longer, more manageable repayment terms
Spread your borrowing over 3 to 30 years. Longer terms bring lower monthly payments, making even large amounts genuinely affordable.
More flexible with credit history
Because the loan is secured against your property, lenders can consider applications where credit history has blemishes. Options are often available where personal loans would be declined outright.
Purpose flexibility other loans can't match
Debt consolidation, home improvements, business investment. Homeowner loans are designed to handle purposes that first charge mortgage lenders often restrict or refuse.
Three steps to your homeowner loan
It's straightforward. Here's exactly what happens when you use Albot.
Quick questions
Tell us about your home, how much equity you have, and what you want to borrow. Takes 90 seconds.
⏱ 90 secondsSee your options
Albot searches the specialist secured loan market and shows you what rates and amounts are available based on your equity and situation.
⚡ Instant resultsExpert adviser handles it
A qualified adviser from Loan.co.uk walks through your options with you and manages the full application to completion.
👤 FCA regulatedFaster, clearer, lower fees
We combine instant comparison with expert advisers, so you get the right homeowner loan at up to 50% lower broker fees.
Instant comparison
Thousands of plans compared in seconds, not days. AI-powered matching finds your best homeowner loan options fast.
Expert support
Qualified advisers at Loan.co.uk handle your application from start to completion. FCA authorised and regulated.
Total transparency
All costs shown upfront before you decide. No hidden broker fees, no confusing small print, no surprises.
No credit footprint
Checking your options uses a soft search only. It won't appear on your credit file or be visible to other lenders.
Common questions about homeowner loans
Everything you need to know before you borrow against your home.
How much can I borrow with a homeowner loan?
Typically from £10,000 up to £1.5 million or more. The amount depends on the equity in your property and your affordability. Lenders look at your home's current value, your outstanding mortgage balance, income, and outgoings to determine how much they'll lend.
Will a homeowner loan affect my existing mortgage?
No. A homeowner loan runs alongside your existing mortgage as a "second charge". Your current mortgage deal stays exactly as it is. This is especially valuable if you're on a fixed rate you don't want to lose, or if remortgaging would trigger early repayment charges.
What is the difference between a homeowner loan and a remortgage?
A remortgage replaces your existing mortgage with a new one, which can mean losing your current rate and paying early repayment charges. A homeowner loan is a separate borrowing arrangement secured on your property, and your mortgage continues untouched. This makes homeowner loans ideal when remortgaging would cost more than it saves.
Can I get a homeowner loan with a less than perfect credit score?
Yes, in many cases. Because the loan is secured against your property, lenders can be more flexible about credit history. Specialist lenders consider applications from people with missed payments, CCJs, defaults, or other credit issues. Rates may be higher, but options are often available where personal loans would be declined outright.
How long does it take to get a homeowner loan?
Typically 2–4 weeks from application to funds, though it can sometimes be faster. The process includes a property valuation and legal work. You'll see your options straight away with Albot. Completion time after that depends on how quickly valuations and paperwork are processed.
What happens if I can't keep up repayments?
Your home may be repossessed if you do not keep up repayments on your mortgage. Lenders will usually try to work with you if you're in difficulty, so it's important to contact them early if you have concerns. Only ever borrow what you can comfortably afford to repay.
Check your equity options in 90 seconds
See how much you can borrow against your home. No commitment, no credit check, no upfront fees.
Get my free quoteRepresentative Example (Homeowner Loans & Second Charge Mortgages)
If you borrow £18,000 over 10 years, initially on a fixed rate for 5 years at 7.4% and for the remaining 5 years on the lender's standard variable rate of 7.9%, you would make 60 monthly payments of £249.27 and 60 monthly payments of £254.63. The total amount of credit is £19,657 (including a lender fee of £595 and a broker fee of £1,062). The total amount repayable would be £30,234. The overall cost for comparison is 10.42% APRC representative. This means 51% or more of customers receive this rate or better for this type of product.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Albot is an introducer and technology platform, not a lender and not a broker. Applications may be passed to Loan.co.uk Ltd, which acts as a credit broker, not a lender. Rates are subject to status, affordability checks and lender criteria.