How do homeowner loans work?

A Homeowner loan is a second mortgage on your home – or other property you own. The first charge is the original or first mortgage.

So think of a homeowner loan as ‘Mortgage No. 2’.

The homeowner loan is used to borrow some of the equity you own in your home. To raise a second charge loan you need to own the property or to have sufficient equity in it to offer as security for the new loan.

These type of secured loans are a way of unlocking some of the equity tied up in your property without the need to remortgage the property or to raise funds elsewhere – through a more expensive personal loan, for example.

Useful pages:

• What are second charge loans?
• What are Secured Loans?
• Secured Homeowner Loans

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