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Secured (homeowner) Loans Guide

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Derbyshire BS reduces loan rate
Derbyshire BS reduces loan rate

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Sainsbury’s Bank slashes loan rates
Sainsbury’s Bank slashes loan rates

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Tesco Bank reduces loan rate
Tesco Bank reduces loan rate

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Derbyshire BS cuts loan rates
Derbyshire BS cuts loan rates

For a limited time only, Derbyshire Building Society has cut rates across its Online Personal Loan r... More

Barclays Bank lowers loan rate
Barclays Bank lowers loan rate

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What is a Secured Personal Loan or Homeowner Loan?

A secured loan, sometimes known as a homeowner loan allows you to borrow a lump sum of money which is secured against a property as a guarantee.  The property is secured by the loan lender by way of a 'second charge', which ranks behind your main mortgage (which is held on a 'first charge' basis).

This is a legal arrangement and is registered with the land registry.

What can you use a Secured Homeowner Loan for?

You can use the money for whatever purpose you want (provided its not illegal or for commercial gain), but secured loans are commonly used to fund home improvements such as a new kitchen or conservatory or other major purchases such as a new car (car loan), or to consolidate debts by shifting all your existing debts from other credit cards, store cards, car finance and loans to one easy to manage monthly payment. 

You will need to meet regular monthly repayments throughout the term of the loan, which can generally be between 5 and 25 years.

Who is a Secured Homeowner Loan suitable for?

As the name suggests, a homeowner loan is specially for people who either own a property or are mortgage payers with equity to use as security and want to borrow larger amounts of money, usually over £25,000 up to £100,000.