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Secured loans for homeowners

A secured loan, also called a homeowner loan or second charge mortgage, lets you borrow against your home while your existing mortgage stays in place. It is repaid monthly over an agreed term, and the property is the lender's security.

Habitat Loans introduces homeowners to Loans Warehouse, where a qualified broker assesses your options and explains the costs. We do not lend or give advice ourselves.

Explore my optionsTry the calculator

Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.

By purpose

What homeowners borrow for

Home improvementsKitchens, bathrooms and repairs, budgeted from quotations.Extensions and renovationsLarger projects with staged costs and a longer term.Debt consolidationOne payment in place of several, with the risks set out plainly.Buy-to-let depositsRaising a deposit from your home for a rental purchase.Business fundingPutting your home behind a business, and what that means.Tax bills and school feesSpreading a large bill, and the alternatives to check first.
By situation

Borrowing in your circumstances

Bad creditHow lenders assess defaults, court judgments and missed payments.Self-employedProving your income from accounts and tax calculations.Retired and over 60sBorrowing in retirement and how age limits apply.Interest-only mortgage holdersHow a repayment second charge sits behind an interest-only mortgage.High LTV, up to 85%Borrowing with less equity: cost, choice and risk.Large loans over £100,000Fuller checks, physical valuations and the effect of term on cost.
How it works

From enquiry to completion

  1. EnquiryYou share the basics: the property, your mortgage, the amount and what it is for. Habitat Loans passes your details to Loans Warehouse.
  2. AdviceA qualified broker assesses your circumstances, compares the lenders it works with and explains its recommendation, its fees and the alternatives.
  3. Application and offerYou supply documents; the lender checks affordability and values the property. A binding offer starts a reflection period of at least seven days.
  4. CompletionLegal work finishes and the money is released, less any fees deducted. Your first repayment date is set out in the offer.

Read the full process in how to apply for a secured loan and what affects timing in how long it takes.

Costs

What a secured loan costs

The cost is the interest over the term plus any fees. A longer term lowers the monthly payment and raises the total interest. Fees added to the loan attract interest too. Rates depend on your circumstances, the combined loan to value and the lender; no rate is quoted on this site.

Interest rates explainedFees explainedWhat APRC meansEarly repayment charges
Common questions

Before you enquire

Is a secured loan the same as a second charge mortgage?

For a homeowner with an existing mortgage, yes. The loan is secured on the home behind the first mortgage, which continues unchanged.

How much can I borrow?

It depends on your equity, the lender’s combined loan to value limit and, above all, whether the repayments are affordable from your income. See how much equity you need.

Will an enquiry affect my credit score?

Ask which type of credit search is used and when. A soft search is not visible to other lenders; a hard search is recorded on your file.

Should I remortgage instead?

Sometimes. If your mortgage rate is low or carries an early repayment charge, a second charge may cost less overall. Ask the broker to cost both routes. See secured loan or remortgage.