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A secured homeowner loan is borrowing secured on your home, usually as a second charge behind your existing mortgage. See how it differs from a personal loan or a remortgage, what it costs and the risk to your home.
Reviewed by David Sampson, Founder & Director · Created 19 October 2026 · Last reviewed 19 October 2026
TL;DR
A secured homeowner loan is a loan secured against your home, usually registered as a second charge behind your mortgage. Because the lender can recover the debt from the property, homeowner loans can offer larger amounts and longer terms than unsecured loans. Since 21 March 2016 most are regulated by the FCA as second charge mortgages.
The names overlap. A homeowner loan, a secured loan and a secured loan mortgage are usually the same product, sold by lenders and brokers under different labels. Whatever it is called, a loan secured on the home you live in is held to the FCA's mortgage rules on affordability and advice, and complaints can go to the Financial Ombudsman Service.
You need to own your home, and most lenders lend only where there is an existing mortgage with enough equity behind it. The guide to second charge mortgages explains how the second charge works, how it ranks behind your first mortgage and what happens if the home is sold.
A secured loan uses your home as security, while a personal loan does not. Secured loans can allow larger sums and longer terms, sometimes at lower rates, but missed payments can lead to repossession. Personal loans are usually smaller and shorter, and missed payments damage your credit without directly putting your home at risk.
The main advantages are access to larger sums, longer terms that lower the monthly payment, and the chance of approval when an unsecured lender would decline, because the home reduces the lender's risk. The main disadvantages are the risk to your home, the higher total interest over a long term and the fees that can apply.
A secured loan also adds a second debt secured on your property, which has to be repaid when you sell or remortgage. If house prices fall, the equity left after both loans shrinks, which can limit your options later. Citizens Advice points out that secured debts are a priority because of the risk of losing your home (Citizens Advice, accessed 19 Oct 2026).
The cost depends on the rate, fees and term. Compare the APRC and the total amount repayable, because spreading a loan over many years lowers the monthly payment but usually increases the total interest. Fees added to the loan are charged interest too. Check early repayment terms if you may repay sooner.
Lender and broker fees vary, and some are added to the loan rather than paid up front. The illustration you receive before applying sets out the rate, the fees, the APRC and the total amount repayable, so you can compare offers on the same basis.
To see how the term and amount change the cost, a second charge mortgage calculator shows the estimated monthly payment, the total repayable and the combined loan to value from the figures you enter, at a rate you choose.
Some people use a secured loan to replace several unsecured debts with one payment. It can lower monthly outgoings, but it turns unsecured debt into debt secured on your home and can cost more over a longer term. Free debt advice services can explain other options before you borrow against your home.
MoneyHelper notes that consolidation only helps if the new payment is affordable and you avoid building up new debts on the cleared cards or loans (MoneyHelper, accessed 19 Oct 2026). Lenders also check what the money is for, and some limit how much of a loan can go towards consolidation.
Compare lenders on the APRC, fees, term and early repayment terms, and check the lender's criteria on equity and credit history. Many secured loan lenders work through brokers, who can also compare a further advance or remortgage. Ask for a dated illustration of the total cost before you apply.
Criteria differ on the maximum combined loan to value, the minimum and maximum loan, the credit history accepted and the property types considered. Comparing 6 secured loan lenders on those points first saves time, because a full application leaves a search on your credit file.
Secured loans can offer larger sums and longer terms, and may be available when an unsecured lender declines, because your home backs the debt. The drawbacks are the risk of repossession if you miss payments, more total interest over a long term and fees that can be added to the loan.
Usually, yes. Most homeowner loans are registered as a second charge behind your existing mortgage, and since 21 March 2016 those secured on the home you live in have been regulated by the FCA as second charge mortgages. Some lenders use the two names for the same product.
Some lenders consider applicants with missed payments, defaults or county court judgments, because the equity in the home reduces their risk. The rate is usually higher and the amount lower than with a clean record. Recent problems, especially arrears on your current mortgage, are harder to place.
Terms are set by each lender and are usually longer than for personal loans, which lowers the monthly payment but raises the total interest. The lender also checks that the term fits your age and income, and that the loan can be repaid alongside your first mortgage.
Contact the lender as soon as possible, because lenders must treat customers in difficulty fairly and consider options such as a payment plan. If arrears continue, the lender can apply to court for possession, after following the pre-action protocol. Free debt advice services can help you set out your options.
Yes, when they are secured on the home you or a close relative live in. Since 21 March 2016, these loans have been regulated by the FCA as second charge mortgages, with affordability checks, illustrations and access to the Financial Ombudsman Service. Business loans secured on a home can fall outside these rules.
Important: Your home may be repossessed if you do not keep up repayments on your mortgage. Information on this page is for general guidance only and does not constitute financial advice.Always verify details directly and seek independent advice before making financial decisions.