Available is not suitable
A lending option being available does not mean it is appropriate for the purpose, budget or property risk.
Frequently asked questions
Clear questions. Careful answers.
A practical reference for homeowners considering secured borrowing. Start with the topic that matters to you, then follow the links to a fuller guide before making a decision.
Important information
General answers cannot decide what is suitable for you.
Consider affordability, the full cost and lower-risk alternatives before placing a legal charge on your property.
Your home may be repossessed if you do not keep up repayments on a loan secured against it.Before the answers
Three distinctions worth knowing first.
Equity is not affordability
Property equity may be relevant, but repayments still need to be sustainable alongside normal household costs.
Monthly is not total
A longer term can reduce a monthly payment while increasing the interest and total amount repaid.
01
Getting started
Choosing whether to explore borrowing
Start with the need, household impact and alternatives—not with an assumed loan amount.
Where should I start before making an enquiry?+
Define what the money is for, work out the amount genuinely needed and review your household budget. Then compare savings, reducing or delaying the spend, unsecured borrowing, a further advance and remortgaging where relevant. A secured loan should be compared on total cost and property risk, not only its monthly payment.
Does an enquiry guarantee that a loan will be offered?+
No. An enquiry, discussion, quotation or acceptance in principle is not a guarantee of a formal offer. Any outcome and terms depend on the assessment and the information available at the time.
How do I know whether secured borrowing is suitable?+
Availability and suitability are different questions. Consider the borrowing purpose, full term, total amount repayable, household resilience, alternatives and the consequences of missing payments. A general FAQ cannot decide suitability for an individual household.
02
Secured borrowing
How homeowner loans work
Understand the legal charge and how this borrowing differs from replacing your mortgage.
Is Arrow Loans a direct lender?+
Yes. Arrow Loans can consider secured homeowner loan applications directly from the public. We may also act as a credit broker or introducer when we cannot underwrite an application ourselves, and we receive commission when acting as an introducer. We will explain the role and route that apply to an enquiry.
What is a secured homeowner loan?+
It is borrowing secured against a property by a legal charge. If there is already a mortgage, the new loan will usually sit behind it as a second charge, which is why the terms secured homeowner loan, second-charge loan and second mortgage are often used for the same type of borrowing.
Is a homeowner loan the same as remortgaging?+
No. A homeowner or second-charge loan normally runs alongside the existing mortgage as a separate agreement and payment. Remortgaging replaces the existing mortgage with a new mortgage. A further advance is additional borrowing from the current mortgage lender.
Why does the property-security warning matter?+
The lender has a legal charge over the property. If repayments are not maintained, the home may ultimately be repossessed. If a property is sold after repossession, the first-charge mortgage lender is normally paid before the second-charge lender, and any remaining shortfall can still matter.
03
Property and equity
The home behind the agreement
Property ownership and equity provide context, but neither guarantees borrowing will be available.
What does equity mean?+
Equity is broadly the current value of the property minus the mortgage and any other borrowing secured against it. Your estimate is only a starting point: a lender may use its own property assessment and criteria.
Does having equity mean I can borrow that amount?+
No. Estimated equity is not a borrowing limit or an approval. The amount and terms, if any, may also depend on affordability, credit history, the property, existing commitments, the borrowing purpose and other circumstances.
What if the property is jointly owned?+
Joint ownership and the names on existing secured borrowing may affect who needs to be involved in an enquiry or agreement. A homeowner loan on a jointly owned home must be in joint names; ask us to confirm how that applies to your ownership and circumstances before proceeding.
04
Application
Affordability, credit and preparation
Accurate information helps build a realistic picture; no single score or document decides an outcome.
What does an affordability assessment consider?+
Income, normal household spending, existing mortgage and credit commitments, dependants and likely changes may all be relevant. The aim is to understand whether repayments appear sustainable now and if circumstances or costs change—not to make the figures fit a preferred payment.
Does credit history determine the decision?+
Credit history may form part of a wider assessment, but no score or previous borrowing record guarantees an outcome. Affordability, property information, existing commitments and the requested borrowing may also be considered.
What information might you request?+
We may ask for a driving licence or passport, payslips and a bank statement. Accurate mortgage, property, income, spending and existing-credit details may also help us understand your application. The exact evidence depends on your circumstances, so confirm what is relevant and how to provide it securely.
05
Costs and alternatives
Reviewing the whole commitment
A lower monthly figure can still produce a higher overall cost when repayment lasts longer.
What determines the monthly repayment?+
The amount borrowed, interest rate and repayment term are central factors. Fees added to the borrowing and whether a rate can change may also affect the cost. Review the monthly payment alongside the APRC and total amount repayable.
Which costs should I compare?+
Compare the rate, APRC, fees, term, monthly payment and total amount repayable. Ask whether fees are paid separately or added to the loan, whether the rate is fixed or variable, and whether early repayment charges or overpayment limits apply.
Which alternatives should I consider?+
Depending on the purpose and amount, consider using savings while retaining an emergency buffer, borrowing less, delaying the spend, an unsecured personal loan, a further advance from the mortgage provider or remortgaging. Compare eligibility, fees, total cost, flexibility and risks for each route.
06
Purpose and support
Using the funds and getting help
The reason for borrowing matters, especially when the commitment may outlast what it pays for.
What might a homeowner loan be used for?+
You may consider borrowing for home improvements, a vehicle purchase, a significant trip or wedding costs. A purpose being possible does not make secured borrowing appropriate. Compare the life of the expense with the repayment term and avoid treating property equity as a spending budget.
Can I repay early or change my payment?+
Depending on your agreement, you may be able to settle early, make a lump-sum payment or request a change to your normal payments. The options, any rebate or charge, and whether a change is agreed depend on your individual agreement. Ask us for a current settlement figure or written explanation before acting.
What should I do if I may struggle with a payment?+
Contact us promptly rather than waiting for a missed payment. Explain what has changed and ask what support or options may be available under the agreement. Free, impartial debt guidance may also help you understand the wider household position.
Explore the detail
Use the answer as a doorway, not the whole decision.
These guides explain the key considerations in more depth and keep the practical next steps in one place.
Product guide
Secured homeowner loans explained
Understand second-charge security, affordability, alternatives, costs and risks.
Read the guide →Self-checkEligibility considerations
Work through ownership, equity, affordability and alternatives without a pass/fail score.
Use the self-check →PreparationBefore you apply
Organise the questions, information and documents that may support an enquiry.
Prepare an enquiry →CostsInterest rates and costs
Review APRC, fees, payment, term and the total amount repayable together.
Review borrowing costs →Still have a question?
Ask before you decide.
Explain what you are considering and ask for any cost, term or condition you do not understand to be clarified. A conversation or enquiry does not guarantee that credit will be offered.