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Secured Loans

Borrowing secured against your property

A secured loan, often referred to as a second charge mortgage, allows you to borrow money against a property you already own. It sits behind your existing mortgage, meaning your current mortgage usually remains in place while the new loan is secured as an additional charge against the property.

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Secured loans can be useful where you need to raise funds but do not want to, or cannot, remortgage your current main mortgage. This may be because your existing mortgage has an attractive interest rate, early repayment charges, or borrowing restrictions.

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At Henden Financial, we help clients understand whether a secured loan is suitable, how it compares with remortgaging or further borrowing, and what the full cost and risk position looks like before proceeding.

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Your property may be repossessed if you do not keep up repayments on your mortgage.

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Secured Loan FAQ

What can a secured loan be used for?

A secured loan may be considered for purposes such as:

  • home improvements;

  • debt consolidation;

  • funding a major purchase;

  • raising a deposit for another property;

  • business funding, where appropriate;

  • tax planning or one-off financial commitments;

  • helping family members;

  • property investment;

  • avoiding early repayment charges on an existing mortgage;

  • keeping an existing mortgage deal in place.

 

The purpose of the borrowing matters. Lenders will assess whether the loan is affordable, suitable and appropriate for your circumstances.

How do secured loans work?

A secured loan is usually taken out in addition to your existing mortgage. Your main mortgage remains the first charge, and the secured loan usually becomes the second charge.

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The lender will normally assess:

  • the value of your property;

  • the balance of your existing mortgage;

  • the amount you want to borrow;

  • your income and affordability;

  • your credit profile;

  • your existing monthly commitments;

  • the purpose of the borrowing;

  • the loan term;

  • whether the borrowing is suitable compared with alternatives.

 

Second charge mortgages have been brought within the FCA mortgage rules framework, so advice, affordability and fees should be assessed carefully. The FCA has recently reviewed second charge mortgage advice, fees, affordability assessments and intermediary practices, which highlights the importance of good-quality advice and clear cost disclosure.

When might a secured loan be suitable?

A secured loan may be worth considering where:

  • your existing mortgage rate is low and you do not want to lose it;

  • your current mortgage has early repayment charges;

  • your existing lender will not offer the additional borrowing required;

  • you need to borrow over a different term from your main mortgage;

  • you want to keep your current mortgage separate;

  • a remortgage would be more expensive overall;

  • you need to raise funds for a specific, affordable purpose.

 

A secured loan should always be compared against other options, including remortgaging, a further advance from your existing lender, unsecured borrowing, or delaying the borrowing where appropriate

Can you use a secured loans for debt consolidation?

Secured loans are sometimes used to consolidate existing debts into one monthly payment.

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This can reduce monthly payments in some cases, but it can also increase the total amount repayable if debts are spread over a longer term. It also means unsecured debts may become secured against your home.

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This should be considered very carefully. We will help you understand both the monthly payment and the total cost over the full term before making any decision.

Should I do a secured loan or remortgage?

The right option depends on your circumstances.

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A remortgage may be suitable if your current mortgage deal is ending, your existing rate is no longer competitive, or you want to restructure the whole mortgage.

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A secured loan may be more suitable if you want to keep your existing mortgage in place, avoid early repayment charges, or raise additional borrowing separately.

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We can help you compare:

  • monthly payments;

  • interest rates;

  • total cost over the term;

  • early repayment charges;

  • product fees;

  • legal and valuation costs;

  • affordability;

  • flexibility;

  • impact on your existing mortgage.

 

The cheapest monthly payment is not always the cheapest or most suitable option overall.

What are the risks?

A secured loan is secured against your property. If you do not keep up repayments, your home may be at risk.

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Important risks include:

  • your monthly commitments will increase;

  • the loan may run for many years;

  • consolidating debt may increase the total amount repayable;

  • unsecured borrowing may become secured against your home;

  • missing payments can affect your credit file;

  • your property could be repossessed if repayments are not maintained;

  • interest rates may be variable depending on the product selected;

  • fees and charges may apply.

 

The FCA requires financial promotions to be fair, clear and not misleading, and promotions should not emphasise benefits without giving a fair indication of relevant risks.

What costs should I consider?

The total cost of a secured loan may include:

  • monthly interest;

  • lender arrangement fees;

  • broker fees;

  • valuation fees;

  • legal fees;

  • product fees;

  • early repayment charges;

  • administration fees;

  • charges for missed or late payments.

 

We will explain these costs clearly and help you understand the full amount repayable, not just the initial monthly payment.

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Why Choose Us?

There are many considerations when choosing someone to help you with your first mortgage. Getting it right could save you thousands. During our initial consultation we will go through the process together and assess your suitability. We offer a comprehensive range of products from across the market, which means we aren't limited to a smaller selection of products and can choose from thousands of available lenders.

20 Years Experience

Our wealth of experience across the industry means our knowledgeable advisors can provide a high level service.

No Offer, No Fee

We are so confident that we will find you the right mortgage, that we only ever charge when you receive a full mortgage offer. For most people this takes them forward to a successful house purchase.

Comprehensive Market Access

You won't be missing out on any great deals. We can access all of the mortgage products which are currently available and know how to find you the most suitable deal.

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Henden Financial Limited

Guiding you through the process of buying your first home

Address

Henden Financial Limited

Arena Business Centres 3F17

Abbey House

282 Farnborough Road

Farnborough

Hampshire

GU14 7NA

©Copyright 2026 Henden Financial Ltd
Henden Financial Limited is an appointed representative of HL Partnership Limited which is authorised and regulated by the Financial Conduct Authority. Henden Financial Limited is a company registered in England and Wales with company number 09538350. The registered office address is Arena Business Centre, Abbey House 3F17, 282 Farnborough Rd, Farnborough, GU14 7NA. The guidance and/or advice contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK.

 

There may be a fee for mortgage advice. The precise amount of the fee will depend upon your circumstances but will range from £399 to £999 and this will be discussed and agreed with you at the earliest opportunity. Think carefully about securing other debts against your home.

Your home may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.

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