Homeowner Loans

What are homeowner loans?

A homeowner loan is a type of credit secured against the value of your property. It allows you to use the value of your home as a guarantee you’ll be able to repay a loan by putting up your property as an asset.

How do homeowner loans work?

A homeowner loan works like a mortgage - the amount you borrow is secured against the value of your home. You’ll pay off the loan each month over an agreed timeframe.

Benefits of choosing a homeowner loan

Lenders tend to offer more favourable terms on a homeowner loan than with unsecured loans. This is because they view the loan as a lower risk, as the borrower has secured the borrowing against their home.

It means you may be offered lower interest rates and more choice over the duration of your loan, meaning a more manageable monthly repayment.

Risks of a homeowner loan

Although putting your home up as collateral for a loan tends to increase your chances of landing favourable terms, this is a huge decision that requires a big commitment and careful consideration.

If you fail to meet the repayments, your home may be used to recover the outstanding debt by lenders, so it’s vital you ensure you can afford the repayments before you apply for a homeowner loan.

Is a homeowner loan right for me?

Taking out a homeowner loan is a big decision that shouldn’t be made lightly. Before you apply, carefully consider what terms will be manageable for you month-to-month. A homeowner loan will put your home at risk if you fail to maintain the agreed repayment schedule.

Am I eligible for a homeowner loan?

So long as you own all or part of your own home, you could be eligible for a homeowner loan. Even if you’re applying with poor credit or CCJs, are or are self-employed or retired, we can help.

What do I need to apply for a homeowner loan?

Before you apply for a homeowner loan, use our homeowner loans calculator to see what your repayments may look like.

Once you’ve chosen how much you wish to borrow, and for how long, you can begin your application online. As well as your most recent mortgage statement, make sure you have all the following details to hand:

• Name and address
• Employment status
• Details of your income

Frequently asked questions about homeowner loans

There’s a lot to consider when it comes to homeowner loans, from bad credit ratings and employment status to repayment periods. Here are some of the most frequently asked questions.

Can I move house with a homeowner loan?

Yes, you can move house while still paying off a homeowner loan. However, you’ll need to pay off the homeowner loan you’re currently servicing, or transfer the outstanding balance to any new mortgage.

How much can I borrow against my home? 

The maximum amount you can borrow against your home will depend on the equity of the house. This is determined by your home’s value and the percentage of that value the lender is willing to accept.

Homeowner loan details

• How much can I borrow?
  Norton’s homeowner loans vary in value from £3,000 to £500,000.

• How long will it take?
  Once you apply for the loan, you’ll receive a decision in principle. The loan will be properly finalised within two weeks of applying.

• How long are the repayment terms?
  Repayment terms are flexible. They can be a short as a year, or as long as 30 years. The most important thing is that you’re comfortable with the time period.

• What are the interest rates?
  While homeowner loan interest rates can be as low as 2.9%, the rate you secure will depend on your history of personal finances and your current circumstances.

• Are there any loan fees?
  We’re a broker, not a bank, so we search the full range of lenders’ products to see how all of their homeowner loans compare. Once a loan is secured, we take a commission payment from the lender and we may also charge a broker fee. This is charged at 12.5% of the loan itself, to a capped figure of £3,995. If a loan is unsecured, we won’t charge a broker fee.