Typically, homeowner loans or secured loans are used for long term borrowing. They can have repayment periods of up to 40 years.
Whether a particular loan is right for you depends on your individual needs and financial circumstances, especially as to whether you will able to service the loan by making all repayments when they become due.
Secured loans are generally used to borrow larger sums of money. This can range from £35,000 and go up to around £100,000, though it is possible to borrow smaller amounts. This could be to fund a large expense like a wedding or making home improvements.
Secured loans are useful if you want to repay them over a long period of time. The longer term typically means that your monthly repayments will be much lower than a standard personal loan. The downside of a long term loan is that you may end up paying more in interest overall and your home is at risk if you fail to make the payments.
Banks and lenders are keen to offer secured loans and homeowner loans in part thanks to the lower risks to them. This opens a range of options for borrowers who can compare secured loans and find the best deal for them. You can also use our secured loan comparison tool and online loan calculator to see how much you can borrow.