If you are a homeowner, it couldn't be easier to apply for a Homeowner or Secured loan.

Secured loans - i.e. where your home is used as security against the loan - are suitable for when you are trying to raise a large amount; are having difficulty getting an unsecured loan; or, have a poor credit history. (Lenders are more flexible with their underwriting, making a secured loan possible when you may have been turned down for an unsecured loan).

Homeowner loans are also worth considering if you need extra money to spend on a new car, home improvements, or that holiday of a lifetime.

Benefits of Homeowner loans include lower monthly repayments than unsecured loans and the ability to borrow more money over a longer period of time.

Some lenders will offer flexible repayment terms allowing you to take payment holidays or pay the loan off early.

A Homeowner loan can be used for almost any purpose and includes:

Debt Consolidation

Home Improvements

Holidays

Car Purchase

Business Startup

Land Purchase

Holiday Home Purchase

A Homeowner loan will take longer to approve as the lender may need to have your home valued to see if there is equity available in the price.

Equity is worked out, in laymans terms, as the difference between the value of your home and any outstanding debts on it such as a mortgage.

To have equity, the value of your home needs to be more than the cost of any debts such as the mortgage. If this is not the case and the house value is lower then you are termed as having negative equity.

This will not stop you getting a loan as some lenders will lend upto 125% of your property value.

Most homeowner loans (nearly 50% according to research carried out by www.polarloans.co.uk) is for debt consolidation and used by people who have a poor credit history.