If you have equity in your property, a homeowner loan is secured against the value of your home. The value of your property is taken into consideration during your application.
Landlords may also take out a homeowner business loan against their buy-to-let properties or portfolios.
Borrowing against the value of your home/ property is useful if you are looking to borrow a large sum of money that you may not be able to achieve through an unsecured loan.
It is important to remember that whilst the benefits and opportunities are huge, the risks can be just as high as missed repayments could lead to you losing your home.