How to Borrow Against Your Home (Remortgage, Further Advance, Secured Loan)
In the UK, there is no single loan called a home equity loan. There are three main ways to borrow against your home. You can remortgage for a larger amount. You can take a further advance from your current lender. Or you can take a second-charge secured loan. This loan sits behind your main mortgage. All three ways put your home at risk if you cannot pay. The key choice is which way costs you the least for your needs.
At a glance
- Cost:
- Arrangement fees £0–£1,500+; valuation and legal costs; early repayment charges may apply
- Total time:
- 4–8 weeks remortgage; 3–6 weeks secured loan
- Steps:
- 6 steps
- Where to apply:
- gov.uk, hmrc.gov.uk, or your local council
Last reviewed October 2026 against official sources. Re-checked annually · next review due October 2027.
The Steps
Follow these in order
Each card shows the phase, expected time, and any cost. Data checked against official UK sources(October 2026).
0 of 6 steps
- Before You Go 30 min
Establish your equity and its release windows
Equity is your home value minus what you still owe on your mortgage. Say your home is worth £320,000 and your mortgage is £170,000 in size. Your equity is £150,000 in total. Lenders will not let you borrow all of it. Most cap total lending at about 80–90% of the home value. This cap includes the new borrowing. Next, check your timing. If you are still in a fixed-rate period, leaving early can trigger an early repayment charge. This is often 1–5% of the balance. That charge can wipe out any gain. A further advance or a second charge leaves your main mortgage alone.
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- Before You Go 1 hour
Choose among the three routes
Remortgage for more: you get one clean loan at first-charge rates. This works best when your fixed period is ending anyway. Further advance: your current lender lends you more, next to your current mortgage. It leaves your early repayment charges untouched. It is fast. But the rate may not match the best deals on the market. Second-charge (secured) loan: a different lender takes a second charge. This helps if your main mortgage rate is very good and you do not want to change it. It also helps if credit problems would make you fail the checks for a full remortgage.
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- Go 1–2 weeks
Get advice — this market is advice-heavy by design
Brokers who cover the whole market can price all three routes side by side. Many charge you no fee. The lender pays them instead. By law, you must get regulated advice for equity release. UK mortgage rules mean most second-charge lending must be advised too. Take your income papers to the meeting. Then the quotes will be real, not just rough guides.
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- Fill / Prepare 2–4 weeks
Pass valuation and affordability
The lender values your home. This is often done from a desk or by driving past. It is sometimes free. The lender also tests if you can still afford the loan if costs rise. For a remortgage, they test against higher rates too. If you are self-employed, you need accounts or SA302s. You usually need 2–3 years of them. Be ready to explain any problems on your credit record. Second-charge lenders often charge more for poor credit. They do not always say no.
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- Submit & Pay 2–4 weeks
Complete through conveyancing
A solicitor registers the charge at HM Land Registry. Plan for valuation fees, legal fees, and arrangement fees. Some deals have no fees but charge a higher rate. For small borrowing, a no-fee deal can cost less overall. You get the money when the deal completes. Then set up the direct debit for repayments. Note the date your product rate ends.
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- Follow Up 30 min
Treat it as mortgage debt, because it is
Every pound you borrow against your home is secured on your home. If you miss payments, you could lose your home. If you use the loan to clear other debts, close those cards and loans once they are paid. Then the debt cannot build up again in two places. Are you 55+ and looking at equity release instead? Treat it as a separate choice with its own rules. Lifetime mortgages add interest for many years. Do not use one as the first choice for a one-off cost.
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Be Careful
Don't make these mistakes
Assuming all your equity is available to borrow. Equity is your home value minus what you still owe, but most lenders cap total lending at about 80 to 90% of the home value, including the new borrowing. In the guide example, £150,000 of equity in a £320,000 home with £170,000 already borrowed leaves only £86,000 to £118,000 of extra room, not £150,000.
Leaving a fixed-rate period early without checking the charge. If you are still in a fixed-rate period, leaving early can trigger an early repayment charge, often 1 to 5% of the balance, which can wipe out any gain. A further advance or a second charge leaves your main mortgage alone.
Using equity release for a one-off cost. Equity release, usually a lifetime mortgage for homeowners 55 and over, adds interest to the loan over many years and is paid back from your estate. It fits real later-life needs, not general borrowing, and you must get regulated advice. If you can pay each month, a standard remortgage or secured loan is almost always cheaper.
Clearing cards with the loan, then leaving them open. If you use the loan to clear other debts, close those cards and loans once they are paid. Otherwise the debt can build up again in two places.
Treating secured borrowing like unsecured debt. Every pound you borrow against your home is secured on your home, so if you miss payments, you could lose your home. Match the type of debt to the value of what it pays for, and remember an unsecured loan, while capped at about £25,000 to £50,000, puts your home at no risk.
FAQ
Frequently Asked Questions
What is the UK version of a home equity loan?
There is no single product with that name. You can meet the need in three ways. You can remortgage for more than you owe. You can take a further advance from your current lender. Or you can take a second-charge secured loan. All three release equity from your home. They differ in rate, fees, and speed. They also differ in whether your current mortgage changes. For homeowners over 55, equity release is a separate choice. A lifetime mortgage is one type. It has its own rules for later-life borrowing.
How much equity can I release?
Most lenders cap total lending at about 80–90% of your home value. Total lending means your current mortgage plus the new borrowing. So £150,000 of equity in a £320,000 home does not mean £118,000–£158,000 more borrowing. At 80–90% of £320,000, total lending is capped at £256,000–£288,000. With £170,000 already borrowed, the extra room is £86,000–£118,000. So your real room to borrow depends on your own numbers. Your income and what you can afford set the final limit. Equity alone does not set it.
Why not just take an unsecured personal loan instead?
If the amount fits, an unsecured loan can be safer. Most unsecured lending tops out at about £25,000–£50,000 in most cases. Your home is not at risk with this type of loan. Secured borrowing can be better for large amounts. It can offer a bigger loan, a longer term, and a lower rate. People often use it for major home work or to clear serious debt. But the trade-off is the risk of losing your home. Match the type of debt to the value of what it pays for.
Is equity release the same thing?
No. Equity release is different. The most common type is a lifetime mortgage. It is for homeowners who are usually 55+. You do not have to make monthly repayments. The interest is added to the loan and builds up over time. The debt is paid back from your estate when you die or move into care. It fits real later-life needs. It is not for general borrowing. You must get regulated advice. Talk it through with your family too. If you can pay each month, a standard remortgage or secured loan is almost always cheaper.
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