A homeowner loan is also sometimes referred to as a secured loan. It requires borrowers to own a property.

This property, or collateral, is used as security on the loan, meaning if the loan is not repaid as promised, your home can be repossessed.
If you’re not a homeowner, in some exceptional cases other possessions may qualify as sufficient collateral on a loan. This could be a boat, or perhaps an expensive car.

The main purpose of collateral is it serves as security to the lending institution or bank - if you own property, you are bound to your agreement with the lender, meaning repayment is guaranteed. Certain properties and characteristics differentiate between homeowner and tenant loans, and we’ve outlined the basics below.

Read on to find out whether a homeowner loan is for you - and get applying today!

Loan company	Features	APR	More info!
	Searches over 250 loan plans to find the best to suit you! 5% annual profit is donated to charities over 130 partners Provides both secure and unsecured loans to customers	13.9% (variable)
	Great loan arrangements can be made, whatever your circumstance Borrow from £3000 - £100,000 Repayment options from 3 - 25 years Have set up their own charity - Promise Dreams, to help terminally ill children	15.3% (variable)
	No fees or penalties with your loan A loan which is tailor made to suit you, not the lender Will get you a quote even if you have been rejected finance in the past Offers exclusive deals for homeowners!	Variable

• Use property (or collateral) as security. This is usually a home, but can include boats or cars.

• Cheaper interest rates apply than with a tenant loan, because the lender has the comfort and guarantee of repayment, whether this comes in the form of cash repayments or property repossession.

• Larger loans are available than with tenant loans, again, for reasons of security to the lender. This means customers can borrow substantial sums of money, generally ranging from £5,000 to £75,000

• Whilst tenant loans can be paid back over a fairly short period of time, homeowner loan repayments can be made over longer stretches. This is usually somewhere between 5 and 25 years.

• Some lenders may use credit rating facilities or credit reference agencies to determine your financial history, but generally speaking, credit history in the case of borrowers taking out homeowner loans is fairly irrelevant. This is because as long as you have collateral up as security, the lender is not interested in whatever your past experiences might have been.

• Application approval rates are higher with homeowner loans

You can also find excellent information on secure loans as well as unsecured and payday loans!
Choose the perfect loan type to suit you!
Not only this, but you can find helpful information on the best loan companies within the UK! Choose from any of the best, including Liverpool Victoria, Alliance and Leicester and many more!

Have a look at some of our fantastic offers now!