Secured Loans
Looking to borrow against your home? Start your secured-loan application online with Money Trumpet.
Typical 12.0% APRC variable
Representative example: A £49,000 net loan over 15 years, with a variable interest rate of 9.62%, would require 180 monthly payments of £567.69. The total amount payable would be £102,184.20, comprising the £49,000 net loan, £48,194.20 in interest, a £3,995 broker fee and a £995 lender fee. The overall cost for comparison is 12.0% APRC variable.
Money Trumpet’s service is free to use. The broker fee in this example is charged by the broker arranging the loan, not Money Trumpet.
What is a secured loan?
A secured loan is borrowing backed by an asset. This page covers loans secured against your home, often known as homeowner loans. Your property is security for the loan, so it could be repossessed if you fail to repay.
The word “secured” protects the lender’s position, not yours. Before applying, consider both the reason you need to borrow money and the consequences of taking on another debt against your home.
How does a secured loan work?
A homeowner with an existing mortgage can take out a separate loan secured on the property, usually as a second charge mortgage. The original mortgage remains in place.
Property as security
The new lender registers a legal charge. Your first mortgage lender normally has priority when the property is sold.
A separate agreement
You repay the new borrowing under its own agreement, alongside the existing mortgage. It is not extra money added automatically to your current mortgage.
Checks before an offer
The lender considers affordability, credit history and acceptable property security before deciding whether to lend.
A second charge mortgage is different from a further advance from your current lender or a remortgage that replaces your main mortgage. Compare these alternatives before committing.
Who can apply for a secured loan?
You need a suitable property to offer as security, sufficient equity and an income that supports the repayments. Owning a home does not guarantee that a lender will accept your application.
Money Trumpet’s initial requirements are that applicants are aged 18 or over and permanent UK residents. Each lender sets additional rules about property, income, age, borrowing and credit history.
What if your home is jointly owned?
Tell the provider about every owner and any existing charges. The provider will explain whose involvement and consent are required; do not apply against jointly owned property without the other owner’s knowledge.
Can you get a secured loan with bad credit?
Some lenders consider adverse credit, but property security does not replace affordability checks. Our secured loans with bad credit guide explains how defaults, judgments and arrears can affect an application.
How much can you borrow against your home?
The amount depends on your property value, existing secured borrowing, affordability and the lender’s rules. Your available equity is not the same as the amount you can borrow.
Equity = property value − existing borrowing secured on the property. A lender also considers combined loan-to-value (LTV): all secured borrowing, including the proposed loan, divided by the property value.
| Calculation | Example |
|---|---|
| Property value | £250,000 |
| Existing mortgage | £150,000 |
| Equity before a new loan | £100,000 |
| Illustrative new loan | £25,000 |
| Combined borrowing | £175,000 |
| Combined LTV | 70% (£175,000 ÷ £250,000 × 100) |
Our partners provide secured loans from £5,000 to £2,500,000, with repayment terms of 1–25 years. The equity illustration above excludes fees and is not an eligibility threshold. A lender’s valuation may differ from your estimate, and fees added to the balance can increase the combined LTV.
What is the difference between secured and unsecured loans?
The main difference is whether you give the lender security over an asset. A homeowner loan puts your property at direct risk if you cannot pay; an unsecured personal loan does not create that charge.
| Feature | Secured homeowner loan | Unsecured personal loan |
|---|---|---|
| Security | A charge over your property | No specific asset offered as security |
| Assessment | Finances, credit and property checks | Finances and credit checks |
| Costs | Interest plus possible mortgage-related fees | Interest and any charges in the agreement |
| If you cannot pay | Arrears can lead to repossession | Credit-file damage and potential court action |
If you do not want to secure borrowing against your home, explore unsecured loans and compare the total cost. Neither type is risk-free.
What can you use a secured loan for?
Home improvements and debt consolidation are common reasons for this type of borrowing. The lender decides which purposes it accepts; do not assume every use is allowed.
Home improvements
Work out your project budget before choosing a loan amount. Include essential work and a realistic contingency rather than borrowing more simply because a larger loan is available.
Debt consolidation
Consolidation can combine debts into one payment, but securing previously unsecured balances against your home introduces a property risk. A lower monthly payment can still cost more overall if the loan term is longer.
Already struggling with debt? Seek free debt advice before taking out a secured loan. StepChange explains the risks and alternatives. Our guide to dealing with creditors can help you prepare for a conversation about existing payments.
How do you compare secured loan rates and costs?
Compare the total amount repayable, fees and term as well as the interest rate and monthly repayment. The lowest headline rate does not necessarily produce the lowest overall cost.
For mortgage-style borrowing, the annual percentage rate of charge (APRC) helps compare interest and relevant charges. Read the personalised illustration and check exactly which costs are included.
| Item | What to check |
|---|---|
| Interest rate | Is it fixed or variable? What happens when an initial rate ends? |
| Monthly repayments | Can you keep up with repayments alongside your mortgage and essential costs? |
| Term and total cost | How much will you pay if the agreement runs for the full term? |
| Fees | Are there lender, adviser, valuation or legal charges? Are they payable if it does not complete? |
| Added charges | Are fees deducted from the cash advance or added to the balance with interest? |
| Early repayment | What would overpayments or full settlement cost? |
Money Trumpet does not charge you to use its service. The broker arranging the loan and the lender may charge fees, as shown in the representative example. They should explain the charges before you agree to proceed. Money Trumpet may receive commission from the broker if your loan completes.
What are the advantages and risks of secured loans?
A secured loan could allow a larger advance or longer repayment period than some unsecured products. However, secured loans carry the risk of losing your home, and a longer term can increase the interest paid overall.
Where a second charge leaves your main mortgage unchanged, it can avoid replacing an existing mortgage deal. Whether that is worthwhile depends on all the costs, including any fees and early-repayment charges.
Is taking a secured loan a good idea?
It depends on your needs, alternatives and ability to repay. Consider an unsecured loan, a further advance or remortgaging with a suitably qualified mortgage adviser. If the problem is unaffordable debt, obtain independent debt advice rather than treating more borrowing as an automatic solution.
How do you apply for a secured loan with Money Trumpet?
Start with our dedicated secured-loan form. Money Trumpet will pass the completed application to a lender or another broker; we do not value your property or make the lending decision.
Complete the form
Provide accurate applicant, income, property and borrowing information.
Application passed on
Your information is forwarded under the privacy notice to the company handling the next stage.
Provider checks
The provider contacts you for further information, property checks and any advice required.
Review any offer
Understand the costs, documents and property risk before accepting.
Submitting a form is not loan approval. Money Trumpet does not carry out a credit search. A lender or another broker can carry out its own searches; ask whether a check is soft or hard before continuing. See our Privacy Policy for information about handling application data.
Secured loans FAQs
Practical answers before you commit to borrowing against your property.
Can you get a homeowner loan without a mortgage?
Potentially, if a lender accepts mortgage-free property as security. It would not be a second charge behind an existing mortgage. Confirm availability and the appropriate process with the provider.
Can tenants apply for a secured homeowner loan?
Not against a home they do not own. This product requires suitable property security. Consider other borrowing or non-credit options instead.
Can self-employed people apply?
Some lenders accept self-employed income. They decide what evidence is needed and whether it supports the repayments. Acceptance is not automatic.
Are secured loans easier to get?
Not for everyone. Security can change the lender’s risk assessment, but credit, affordability, property and legal checks still matter.
Will Money Trumpet’s form affect your credit score?
Money Trumpet does not carry out a credit search. Subsequent checks by a lender or another broker are separate, and a hard search can affect your credit score.
How long does a secured loan take?
There is no guaranteed completion time. Documentation, valuation, legal work and underwriting can take longer than for an unsecured loan. Do not rely on the funds until completion is confirmed.
Can you pay off a secured loan early?
Usually, but an early-repayment charge may apply. Ask the loan provider for a settlement figure and the overpayment rules before deciding.
What happens if you default on a secured loan?
Arrears can damage your credit record and lead to repossession. Contact the lender promptly if you cannot pay and obtain free debt advice. A missed payment should not be ignored.
What happens if you sell your home?
The loan will normally need to be settled from the sale, unless the lender agrees another arrangement. Check settlement charges and whether a transfer to another property is possible.
Does an online loan calculator guarantee the payment?
No. A calculator gives an estimate from its assumptions. Your actual cost depends on the offered rate, term and fees in the lender’s documents.
Useful borrowing guides
Secured borrowing with bad credit
Explore how adverse credit and property checks can affect your options.
Loan decisionsHow lenders assess applications
Understand the information behind a lending decision.
AffordabilityBuild a realistic household budget
Consider essential spending and existing commitments before new borrowing.
Sources and review
Newly researched and written for Money Trumpet on 16 September 2026. General guidance, not a personal mortgage recommendation.
Sources: MoneyHelper: secured and unsecured borrowing; MoneyHelper: second mortgages; MoneyHelper: further advances; FCA: second charge mortgage outcomes; Experian: secured loans; NatWest: secured loans explained; StepChange: debt consolidation.
Ready to start your application?
Use Money Trumpet’s dedicated secured-loan form.
Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.