What a homeowner loan is
A homeowner loan is a loan secured on a property you own, usually alongside your existing mortgage. It's another name for a second charge or secured loan, and it's regulated by the Financial Conduct Authority.
Your home may be repossessed if you don't keep up repayments on a loan secured on it.
Worked example
Borrowing £25,000 at 8% over 10 years costs £303.32 a month, £36,398.28 in total.
Interest is worked out monthly at one twelfth of the annual rate. Lenders may calculate interest differently (some charge it daily), so your actual payments can differ slightly.
What lenders look at
Lenders look at your income, credit history and how much equity you have in your home. They'll also need your existing mortgage details.
Inputs for the home owner loan calculator
Amount to borrow
The amount you want to borrow.
Interest rate (per year)
The annual interest rate on your loan. The rate shown is only an example, so enter the rate from your quote.
Term
How many years you'll repay over.
CALCULATOR QUESTIONS
Homeowner loan calculator questions
Is a homeowner loan the same as a secured loan?
Yes. It's a loan secured on your home, usually alongside your mortgage.
Do I need a mortgage to get a homeowner loan?
No. You need to own the property, with or without a mortgage.
How much can I borrow?
It depends on your equity, income and credit history, and on the lender's limits.
What's the risk?
Your home may be repossessed if you don't keep up repayments on a loan secured on it.