When we act as direct lender
We consider the application against our lending criteria and, if it progresses, Arrow Loans is the firm providing the secured homeowner loan.
Direct-lender secured homeowner loans
How secured homeowner loans work.
Arrow Loans can consider applications directly from UK homeowners. We also act as a credit broker or introducer in some circumstances, so we will explain our role and the route available before you make a commitment.
Our role
A direct lender and an introducer.
Arrow Loans is a specialist mortgage lender providing secured homeowner loans directly to the public. Where we cannot underwrite an application ourselves, we may instead act as a credit broker or introducer to another financial services company.
Read about Arrow LoansWhen we act as introducer
We may introduce the enquiry to another financial services company when we cannot underwrite it ourselves. We receive commission when acting as an introducer.
Before you continue: we will explain the route being used and which firm is providing each service. An enquiry or quotation is not a guarantee that a loan will be offered.
Important information
Your property is part of the agreement.
Think carefully before securing other debts against your home. If borrowing is used to consolidate existing debts, you may extend how long you repay them and increase the total amount repaid.
Your home may be repossessed if you do not keep up repayments on a loan secured against it.How it works
The loan is separate from your first mortgage.
You continue paying your existing mortgage and make a separate payment under the homeowner loan agreement. The second lender’s security is a legal charge registered against the property.
Equity is relevant
Equity is broadly the property value less borrowing already secured against it. It is one part of an assessment, not a guarantee that credit will be available.
Affordability still matters
Security does not replace an affordability assessment. Income, spending, existing commitments and whether repayments remain sustainable are important.
The agreement has its own cost
The interest rate, APRC, fees, term, monthly payment and total amount repayable should be reviewed together.
The first mortgage remains
This is different from remortgaging, where a new mortgage pays off and replaces the existing mortgage.
Suitability and alternatives
Compare the route, not only the amount available.
A secured loan may be one route for a homeowner, but the purpose alone does not make it appropriate. Consider the alternatives and the effect on your existing mortgage before deciding to apply.
Runs alongside
Second-charge homeowner loan
Your first mortgage stays in place. The new loan has a separate rate, term and payment, and is secured by another legal charge.
Questions to consider
- What will both secured payments cost each month?
- How does the total repayable compare with other routes?
- Would the payment remain manageable if circumstances changed?
Replaces
Remortgage
A new mortgage clears and replaces the current mortgage. Check the new rate and term alongside valuation, legal or arrangement costs and any early repayment charge on the existing deal.
Adds to
Further advance
Additional borrowing from your current mortgage provider. Its rate and terms may differ from the main mortgage, and affordability checks still apply.
No property charge
Unsecured borrowing or saving
An unsecured loan does not use your home as security. For some needs, borrowing less, delaying the spending or using savings may also be worth considering.
Rates, fees and term
Look beyond the monthly repayment.
A longer term can make a monthly payment lower while increasing the amount of interest paid overall. Your secured loan illustration should set out the personalised costs before any formal offer.
Read about interest rates and costs01
Interest rate and APRC
Check whether the rate is fixed or variable and use the APRC to understand the overall annual cost, including relevant charges.
02
Fees and charges
Review any lender, valuation, legal, broker or arrangement costs shown for the particular product and whether they are added to the borrowing.
03
Term and total repayable
Compare the full term and total amount repayable, not just the first payment or headline interest rate.
04
Early repayment
Ask whether overpayments or early settlement are allowed and what charges or interest adjustments may apply under the offered agreement.
Credit and affordability
Property security is only one part of the decision.
A lender needs to consider whether the loan appears affordable as well as the available security. A decision and the terms available depend on the individual application.
Income and regular outgoings
The assessment may consider income, household spending, mortgage payments and other financial commitments to understand what remains affordable.
Credit history
Credit information helps us understand how existing and previous commitments have been managed. We consider each application on its merits rather than relying on a credit score alone.
Property and existing mortgage
The property value, current mortgage balance and other secured borrowing help show the equity and charges already attached to the home.
Reasons people may explore borrowing
The purpose matters, but it does not decide suitability.
You may be considering a homeowner loan for one of several reasons. Whatever the purpose, it is still secured borrowing, so consider affordability, alternatives, the repayment term and the total cost before deciding whether it is right for you.
01
Debt consolidation
Combining existing debts may change your monthly payments, but could extend the repayment period and increase the total amount repaid, while moving previously unsecured borrowing such as credit cards, personal loans and overdrafts against your home.
Explore the guide and consider independent debt advice →02Home improvements
For planned repairs, renovation or changes to the property.
Explore the guide →03Vehicle finance
For a vehicle purchase where the borrowing may outlast an asset that loses value.
Explore the guide →04Wedding costs
For a one-off event whose cost may be repaid for years afterwards.
Explore the guide →05Holiday costs
For discretionary spending that should be weighed carefully against securing the home.
Explore the guide →Before enquiring
Gather a clear picture of the application.
We may ask for proof of identity, evidence of income and a recent bank statement. Wait for us to explain exactly what is required and how to provide sensitive information.
See the full application journey01
Your goalThe amount you want to explore and the intended purpose.
02
Your financesIncome, regular household spending and existing credit commitments.
03
Your homeProperty details, ownership, estimated value and current mortgage information.
04
Example evidencePassport or driving licence, payslips and a recent bank statement if requested.
Common questions
The essentials, in plain language.
These answers are general information. They do not confirm eligibility or the terms that may be available for an individual application.
More frequently asked questionsIs Arrow Loans a direct lender?
Yes. Arrow Loans is a specialist mortgage lender that can consider secured homeowner loan applications directly from the public. We are also a credit broker or introducer in some circumstances. We will explain which role applies to an enquiry and receive commission when acting as an introducer.
What is a secured homeowner loan?
It is borrowing secured against your property by a legal charge. Where you already have a mortgage, the homeowner loan will usually rank behind it as a second charge, so both loans are secured against the property.
Is a second-charge loan the same as remortgaging?
No. A second-charge loan normally runs alongside your existing mortgage. A remortgage replaces the existing mortgage with a new mortgage, while a further advance is additional borrowing from your current mortgage provider.
Will Arrow Loans check my credit file?
With your permission, the credit search we use for a quotation is treated as a quotation and leaves no footprint at the credit reference agencies. Read our credit-search consent information and ask us which search will be used before agreeing.
What affects the loan terms available?
The outcome depends on your individual circumstances, including affordability and the available equity in your property. Your credit history, income, outgoings, existing commitments, loan purpose and property information may all be relevant to our assessment.
Next steps
Ask questions before making a commitment.
Review how the process works, or contact Arrow Loans if you want to discuss the information that may be needed for an enquiry.