What is a secured homeowner loan?
A secured homeowner loan are secured by a second charge on an already mortgaged property. Hence they are sometimes called second charge mortgages. It is also possible to obtain a secured loan using some other form of security.

What are the benifits?
If you do not keep up you repayments with a secured loan then you home is at risk, although the lender may well offer you a reduced payment plan instead. Hence such loans are considered less of a risk for the lender and in consequence the rates of interest are lower than on an unsecured personal loan.

How much can I borrow?
Secured loans are generally available for sums of between £3,000 and £150,000, repayable over 3 to 25 years, though some lenders may lend more than this. Many lenders will advance as much as 125% of the property value, but this is only likely to be the case with relatively low value properties.

Fixed or variable rate?
If you are looking for security then choose a fixed rate loan. With a fixed rate loan your repayments will never change. This type of product may be available on an interest-only or capital plus interest basis and can normally be used for any purpose.

Variable rate loans are cheaper and if the lender reduces their lending rate of interest your repayments should decrease, whereas those on a fixed rate would not benefit. Of course market forces may lead the lender to increase their lending rate, thus increasing your repayments.

Who can get a second charge mortgage?
A second charge mortgage is usually made available primarily to people in owner-occupied homes, including ex-council properties. However, some lenders will lend to landlord owners of tenanted property. As with normal mortgages, there may be different rates of interest available to people with an impaired credit history, or the self-employed who are borrowing without evidence of their accounts.