A homeowner loan (also known as a secured loan) is a loan that is secured against your property. In a similar way to your mortgage, you are using your property as security against the loan. Homeowner loans can be a good solution if you want to borrow a large amount of money. They are usually used to consolidate existing credit, to make home improvements or fund major purchases and as you can spread the repayments over a longer period than a personal loan, the monthly repayments can be lower. Your property is provided as security for the loan, lenders see you as less of a risk and may charge lower rates of interest. However, your home could be at risk if you are unable to repay the loan.

If you are a homeowner with an existing mortgage then you are likely to be eligible to apply for a homeowner loan.

Homeowner loans can be used for almost any purpose, however they are not able to be used for business purposes.

Depending on the amount of equity available in your property, you may be able to borrow up to £100,000.

This is calculated as the amount you are looking to borrow (including your existing mortgage) as a percentage of your property's value.

The "soft search" that is carried out as part of your initial application has no adverse effect on your credit file. You will see the search on your own credit file but lenders will not see it. If you decide to go ahead and take out a loan, the lender will then make a search visible to other lenders.