What is a homeowner loan?

A homeowner loan, or secured loan, is a type of mortgage.

Much like a normal mortgage, the homeowner loan repayments can be spread over many years to keep the monthly cost down.

Your primary mortgage lender will have a ‘first charge’ over your property. This means that they can force your home to be sold if you do not keep up with the mortgage repayments.

This type of loan is also known as a second charge mortgage. You take it out while keeping your main mortgage in place, hence the reference to second mortgage.

A secured homeowner loan will be a second or even third ‘charge’ against your home. This means that they also can seek repayment of unpaid mortgage debts via sale of your home (repossession).

Homeowner loans are cheaper than unsecured personal loans but more expensive than a first charge normal mortgage.

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