A home owner loan is only available to you if you own your property either outright or under a mortgage. The money you borrow is secured against the property. Fail to pay the instalments and you could end up losing your house. But if you're investing in home improvements, the increase in value of your house could mean you actually make a profit.

The home owner loan is the most common type of secured loan. Unsecured loans are fairly expensive in interest rates because the lender has given you money without security. A home owner loan will be cheaper, not just because it's usually for quite a significant amount of money, but also because the lender is taking less of a risk - the loan is secured against your home, and there's every incentive for you to pay up on time.

Secured loans are much easier to obtain than unsecured loans. Because the lender is given some security, it enables persons who are self-employed, or who have recently changed jobs, or who have adverse credit can participate. This is why a loan from a debt consolidation company is likely to be a home owner loan. If you require a loan longer than normal repayment periods, the home owner loan is the most likely method of getting it.

You may have noticed that most unsecured loans are limited to £25,000. This is partly because the Consumer Credit Act (1974) regulates lending up to £25,000. If you want to borrow more, then the transaction is unregulated. Be sure to read all the small print, and make sure you're aware of any liability on your part.