What Are Secured Loans and Homeowner Loans?

As the name secured loans suggests, they are loans that are secured on property or land. To obtain one of these loans you must be a homeowner with equity in your property. Equity is the difference between your house value and your mortgage balance. If you do not have a mortgage on a property then you will not be able to get a secured loan. Secured loans are also known as second charge lending due to the charge being registered after your mortgage.

Secured loans can be used for many purposes, for example debt consolidation but not only can a secured loan be used for debt consolidation it can be used for a number of reasons, This type of lending is ideal for debt consolidation as secured loans have a lower rate of interest than credit cards and higher purchase and with borrowing at a lower rate of interest a lot of money can ve every month.

Secured lending has been around for many years and thousands of homeowenrs have benefited with secured loan. The other use for a secured loan is maybe to fund a large home improvement. Many people take out a secured loan or remortgage for debt consolidation or home improvements. Taking out a secured loan for home improvements can add a lot of money to your property such as adding an extension as this will add value to your property.

As secured loans are for homeowners with a mortgage, an alternative method for a homeowner to raise money is by a remortgage This can be done by replacing the mortgage that is already secured on the property and of course you can borrrow more money or maybe even get a much lower rate than your exsisting lender can offer you. When taking out a secured loan this can be paid back at any time. The penality should not be as much as your mortgage and are a lot less to pay back.

The more equity you have in your property the more you wil be intitled to a lower rate of interest. If you have a lot of equity in your property or land you might find that you are entiled to a lower rate of interest. This is due to the lender's security being secure in case of repossession . During the recession many mortgage lenders changed how much they would lend, as house prices were falling, but with the rise in house prices lenders have increased how much they will lend and have increased the loan to value.

Secured loans do not take long to complete and are arranged a lot easier than a remortgage. A secured loan should be completed within the matter of weeeks while a remortgage can take a lot longer to arrange. Secured loans are faster to arrange than a remortgage.

When searching for a secured loan or a remortgage you are best to research the market as there are thousands of products that are available and choosing the wrong product could prove to be very costly. You are best to deal with a company that deals with the whole market.


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Champion Finance are one of the main secured loans brokers in the UK, and have been arranging homeowner loans since 1985. They also arrange remortgages and mortgages from the entire mortgage market. Every debt solution is also available to help those in debt to become debt free.