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Secured loans

Secured loans, second-charge mortgages or 'homeowner loans' could be a handy way to borrow large amounts at a potentially lower rate, as the loan is secured against your property. We cover over 90% of the secured loans market.

I want to borrow:

£

Over how long?

Loans displayed from 12 companies. How our loans calculator works.

How our loans calculator works

Our loans comparison shows how much each loan is likely to cost per month and in total. The amount we show is based on these assumptions:

  • The representative APRC is the interest rate you'll be given
  • The loan amount you entered is the exact amount you'll borrow
  • You won't make any late or early repayments
  • You won't fail to make any of your loan repayments
  • You won't repay the loan before the end of the term
  • You won't make any overpayments or underpayments

Our comparison shows how much each loan should cost you, but the amount could be different if the way you repay it varies from the above assumptions. The amount could also be different if the lender offers you a different interest rate to the APRC.

Representative example: Assumed borrowing of £18,000 over 120 months, with a fixed borrowing rate of 6.5% per annum for the first 60 months, followed by 60 months at the lender’s standard variable borrowing rate of 4.95% above Bank of England Base Rate. There would be 60 monthly instalments of £227.38 followed by 60 instalments of £221.71. Total amount payable £26,945.40 comprised of; loan amount (£18,000); interest (£6,920.40); Broker fee (£1,530); Lender fee (£495). This would result in an overall cost of 9.1% APRC

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

Warning: Late repayments can cause you serious money problems. If you fall behind on your mortgage or debts secured against your home, it may be repossessed. For more information see our debt help guides.

uSwitch Limited is a credit broker, not a lender, for consumer credit products. Our services are provided at no cost to you, but we may receive a commission from the companies we refer you to. For some loans a broker fee of up to 12.5% may be added to the cost of the loan.

Our providers

1plus1 Loans
1st Stop
1st Stop Personal Loans
AA
Amigo
Aspire Money
Bamboo Loans
Central Trust Ltd
Creditplus
Fluent Loans
George Banco
Guarantormyloan
Hitachi Capital (UK) PLC
Likely Loans
M&S Bank
Masthaven Bank Ltd
Monevo
My Car Credit
Nationwide
NatWest
Norton Home Loans
Optimum Credit Ltd
Paragon Bank PLC
Post Office
Prestige Finance Limited
RateSetter
Sainsbury's Bank
Shawbrook Bank Limited
Step One Finance Limited
Suco
Tesco Bank
TFS Loans
Together
TRUSTTWO
UK Credit Limited
United Trust Bank
West One Secured Loans Limited
Zopa
Zuto

Secured and homeowner loans

Secured loans, also referred to as home loans, second-charge mortgages or homeowner loans are a special form of secured loan attached to your property.

Why choose a secured homeowner loan?

Homeowner and secured loans are all about borrowing a large sum of money, typically from £35,000 onwards. This is because normal unsecured personal loans are usually only available up to £35,000.

How much can you borrow on a secured loan?

The loan amount you can borrow through a secured loan will depend on the value of the equity in your home, your credit score, your income, and your financial commitments. For example, if you live in a £400,000 home, but have a £370,000 mortgage and a poor credit score, it's unlikely you'll be able to borrow the maximum amount typically offered by secured loans of £100,000.

What are the advantages of a secured loan?

The main advantage of a secured loan is the amount of money you can get access to at relatively short notice. What's more, the interest rates on offer are fairly typical, and comparable to smaller loan amounts. Finally, you'll pay off the loan in a series of regular payments, meaning you should be able to plan your repayments accordingly.

What are the disadvantages of a homeowner loan?

The main disadvantages are related to the huge risk in taking out a homeowner loan should you fall behind in your repayments. If you fail to keep up your payments on a normal loan it will damage your credit score, lead to a repayment plan and, in the worst case, end up with you declaring bankruptcy. But with a homeowner loan the downsides are far more acute. Failing to maintain your payments on a homeowner loan could mean losing your home. That means you should only ever consider taking out a secure loan if you are sure you can maintain your payments, have access to another source of credit in the event of an emergency, or have no other option. What's more, the main benefit of a secured loan – namely the huge size of the loan you could potentially get – is entirely contingent upon your credit file, which will impact the interest rate you are offered. Finally, homeowner loans may also be subject to high upfront fees.

What can you do if you don't want a homeowner loan?

The main alternative to a secured loan is to remortgage your property, although this still means the same risks and dangers apply. If you have a large amount of equity in your home you may be offered a very competitive rate, but you must at all costs keep up your repayments.