Welcome to VeryMerryLoans.com, we can help you borrow £100 - £2,000 from 3 - 12 months.

Loans for 3 - 12 months.

Short, simple and fast application process.

Decisions in minutes.

How much you need today?

When can you repay this loan?

1 Months

Borrowing: £1000

Representative APR: 1192%

Repayment By: 5.1.2016

Interest: £58.68


Total Repayment: £1058.68

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Rates from 35.9% APR to max 1304% APR. Minimum Loan Length is 3 months. Maximum Loan Length is 12 months. Representative Example: £250 borrowed for 3 months. Total amount repayable is £411.63 in 3 monthly instalments of £137.21. Interest charged is £161.63, annual interest rate of 292% (fixed). Representative 1192% APR (variable). We are a free licensed credit broker, not a lender.

Homeowner Loans


Whether you need funds for home improvements, debt consolidation, or simply wish to free up some extra cash, using your property as collateral can be a great way to secure a highly competitive rate on your next loan and improve your chances of a successful application.

Take a look below at the most frequently asked questions regarding homeowner loans, and discover how you can make them work to your advantage when it comes to securing credit.

What Is A Homeowner Loan?

A homeowner loan is the term used to describe any form of personal loan which uses the applicants property as security in order to reduce the overall risk to the lender. They work in exactly the same way as any other traditional loan with a lump sum lent to you upfront, whilst affordable monthly repayments are made until the total balance has been cleared.

What Can Homeowner Loans Be Used For?

Homeowner loans can be used for almost any purpose. There is a common misconception that funds raised from this type of financing have to be used for property purchases or home improvements, whereas the reality is that they can be used for anything from cars and holidays to debt consolidation and household refurbishments.

Can I Get A Homeowner Loan If I Have Bad Credit?

Yes. Just because you have a poor credit history doesn't mean that you won't be able to get a loan, particularly if you can significantly reduce the risk to the lender by using an asset of high value, such as your home, as collateral should you be unable to repay the amount borrowed.

Can I Apply For A Homeowner Loan With Another Person?

Yes. If you own your property with someone else then you'll need to apply for a joint loan which is secured against the property. This means that you'll share the responsibility of repaying the loan, but will both reap the benefits on your credit scores when it comes to making successful repayments.

My Property Has A Mortgage Attached. Can I Still Get A Homeowner Loan?

Yes. Just because you have a loan attached to your property doesn't mean that you can't sell up and move house when you want to. You'll need to contact your lender to find out how much is left to repay, inclusive of total interest and any early repayment charges, and clear the balance before completing your sale.

Your lender may be happy to transfer the security of your debt onto the new property that you're purchasing, however this will depend on factors such as the value of the new property and the total amount already borrowed against it through, for instance, a mortgage.

Am I Eligible For A Homeowner Loan If I'm Unemployed?

Yes. In fact, you've got a much better chance of being accepted for a personal loan whilst you're unemployed since the risk to the lender will be greatly reduced. You'll still need to prove that you can meet the monthly repayments, however you will have a far greater chance of getting accepted a great rate when compared to an unsecured loan.

How Long Does A Homeowner Loan Run For?

It depends, but they usually run from anywhere between 1 and 25 years since homeowner loans are usually taken out over the mid to long term rather than over the short term. Those looking for a short term solution usually require funds to be paid out very quickly and, whilst every effort is made by lenders to underwrite homeowner loans quickly, they can take a few weeks to put into place.

Can I Have More Than One Homeowner Loan?

Yes, however this will depend on the total amount of equity that remains in your property when taking other debts into account. For example, you may already have a mortgage secured against your home and lenders will always want to ensure that enough equity remains to clear your new debt should you fall into financial hardship.

How Quickly Can I Get Approved For A Homeowner Loan?

Homeowner loans involve a more complicated underwriting process than their unsecured counterparts and can therefore take a few weeks longer to put into place. Although every lender is different in terms of their underwriting and approval turnaround times, we'd recommend allowing anywhere between 2 – 6 weeks for completion depending on the amount being applied for.

How Quickly Will I Receive My Money?

Once the loan has been approved and your loan has been signed off, many lenders can arrange for a transfer of cash directly into your bank account in as little as 24 hours. Whilst this is generally seen as the most popular way for loans to be issued due to their speed, most lenders will also be happy to send you a cheque should you request it.

How Old Do I Have To Be To Take Out A Homeowner Loan?

You'll need to be at least 18 years old to apply, however some lenders may require applicants to be at least 21 years old. Check the terms and conditions of each lender before applying.

Do I Have To Take A Homeowner Loan Through My Bank?

No. Many people often feel obliged to take out additional borrowing through the bank they have used for their mortgage or other debts, but this simply doesn't have to be the case. Banks are typically only able to offer one type of loan, whereas using a brokerage like Very Merry Loans will give you access to the most competitive rates on the UK market from a wide variety of lenders.

What Happens If I'm Unable To Repay My Loan?

Homeowner loans are very competitively priced due to the reduced risk of securing the borrowing against your property. If you're unable to repay your loan then your home could be put at risk.

The reality is that if you're struggling to meet your financial commitments, simply contact your lender straight away and explain your situation – you certainly won't be the first or last person to fall on hard times financially. They may be able to assist you by freezing interest and charges, as well as directing you to free debt advice services that can help you on your way.

Very Merry Example

Loan Amount: £300
Loan Term: 3 months
Interest: £193.96
Total Repayable: £493.96 Apply

Representative APR: 1192%. (variable)
Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk.