What's a homeowner loan?
A homeowner loan is a type of secured loan designed for existing homeowners. It lets you borrow money while leaving your existing mortgage in place, using your home as security.
Your existing mortgage and your homeowner loan are completely separate.
It means you can borrow more money against your home without affecting your monthly mortgage payments.
They are also known as second charge mortgages, secured loans or second mortgages.
Things to consider before taking out a homeowner loan
How much can I borrow?
How much you can borrow will depend on your individual circumstances. We consider things like how much of your first mortgage you have already paid off, your financial history and how much of the repayments you can afford.
The cost of a homeowner loan
You will need to pay a lender fee and interest as part of your homeowner loan. The interest rate you’ll be charged is based on the specifics of your application and is unique to you. This will be paid as part of your monthly repayments on either a fixed or variable rate.
Is a homeowner loan suitable for me?
To be considered for a homeowner loan, your home needs to have a mortgage, and sufficient equity remaining in the property. Also, we'll check your credit history and verify your income to make sure you can afford the repayments for the amount you want to borrow.
Getting financial advice
It's important that you get financial advice before you apply for a homeowner loan. At Admiral, we work with brokers who can give you financial advice and help you understand if a homeowner loan is the right option for you. Please note they will charge a broker fee.
Benefits of a homeowner loan
Penalty free overpayments
You can pay back more of your loan in one go without facing a penalty.
Locked into a fixed rate
No need to worry about increasing your monthly mortgage payments.
Longer term options
We offer repayment terms up to 35 years.
How do homeowner loans work?
If you’re successful in an application for a homeowner loan and are going to use it for debt consolidation, the agreed sum will be sent to your creditors.
If you’re not going to use it for debt consolidation, the sum will be transferred to you directly.
You can borrow from £20,000 to £500,000. This will depend on your eligibility and the amount of equity in your property.
You will then pay it back in monthly repayments, including your interest, until the end of your loan term. This could be anything from 3 to 35 years.
What can homeowner loans be used for?
Home improvements
Use the money to make home improvements like extensions, repairs or remodelling.
Debt consolidation
Consolidate your outstanding debts into one affordable monthly payment.
Lifestyle loans
Fund anything from a wedding to buying a new car. The money is yours to spend.
Got any questions?
Can I get a homeowner loan with bad credit?
If you have a poor credit rating we may still consider a loan application from you. The application will be individually assessed based on your personal circumstances and the affordability checks we carry out.
As with all loans, a bad credit score could affect:
- your ability to get the loan in the first place
- the amount you can borrow
- the interest rates you could get
What else are homeowner loans known as?
They can also be known as:
- secured loans
- second mortgages
- second charge mortgages
What if I move home?
If you sell the home your homeowner loan is against, you’ll usually need to pay back your loan in full. We'll consider all requests to move your homeowner loan to your new property.
What’s the difference between a homeowner loan and remortgaging?
Remortgaging is when you move your existing mortgage to a different lender, or to a new deal with your current lender.
A homeowner loan is a new and separate mortgage.
Do homeowner loans cost more than personal loans?
Homeowner loans can often offer lower interest rates than personal loans or credit cards.
As homeowner loans are generally taken out over a longer term, the total cost can still be higher than a shorter-term personal loan with a higher interest rate.
Is there an age limit?
Our usual age range is between 21 and 75 years old, but we may still consider your application if you’re outside of this age range.
I’m self-employed – can I still get a homeowner loan?
We offer homeowner loans to people who have been self-employed for at least 12 months.
But as always, your ability to get a loan is always based on your application and financial circumstances.