Home loans

What is a home loan?

A home loan can have different meanings depending on what you’re looking for, but they generally mean one of the following:

Firstly, it could mean that you want to borrow money to purchase a home, or change the existing loan you already have on your home. Secondly, home loans can mean using the value of your home to pay for something else - like buying a new car or paying off debts. This type of loan is known as a homeowner loan.

Lastly, you can take home loans to mean equity release - a scheme that allows you to raise funds in exchange for a percentage of the equity in your home. You can continue living in your home, but it may be partly or completely taken on by the lender when you pass away.

Read on to find out more about the different types of home loan.

Different types of home loan

A home loan could mean one of several different things.

Housing loans for home purchase

Housing loans for home purchase, more commonly known as a mortgage, are when you borrow money to fund a house purchase. Whether you’re a first-time buyer or looking to purchase a second home, a home loan could be right for you.

There’s a range of mortgages available and the type of housing loan that best suits you will depend on your personal situation. There are different repayment methods such as repayment mortgages or interest-only mortgages, as well as fixed-rate mortgages. It’s important to investigate what type of housing loan will suit you best.

Norton Finance specialises in second charge mortgages – we can help you find the most suitable product for your circumstances.

What is a second charge mortgage?

Second-charge mortgages allow you to borrow money without the need for remortgaging. They are a popular alternative to remortgaging, as with a new additional mortgage you don’t pay any exit fees or early repayment charges on your existing mortgage.

Before taking out a second charge mortgage, you should consider the potential risks. Your home acts as the collateral in the agreement, meaning if you fail to make repayments on your mortgages, you could end up losing your home.

Find out the facts before branching out about second home mortgages.

Is a homeowner loan right for me?

A mortgage is a loan used to buy a home, but you cannot cover the cost of a deposit with another loan. Borrowing to raise a deposit may affect your ability to secure a mortgage as lenders want to be sure you have the capacity to take on mortgage repayments.

Home loans for homeowners

With a home loan or homeowner loan, you can use your property as collateral to borrow money. To apply for a homeowner loan, you need to be a homeowner or hold equity in property. You can take out a homeowner loan for many reasons such as home improvements or debt consolidation.

Is a homeowner loan the same as a mortgage?

A homeowner loan is not the same as a mortgage. A mortgage is a loan you take out to purchase property. On the other hand, a homeowner loan helps those who already have a mortgage or own their property outright to access the funding they need for other purposes.

Find out information on the homeowner loans Norton offers.

Using your home for equity release

Equity release is a product that can boost the financial prospects of our customers later in life. If you're aged 55 or over, you can release some of the value of the equity on your home to raise money for home improvements or lifestyle purposes such as early retirement.

Equity release allows you to draw a regular source of income or a cash sum from up to 60% of your home’s value. What’s more, you don’t have to sell your home or even move out if you choose this plan.

Find out more on the equity release loans Norton offers.

Home loans from Norton Finance

We specialise in helping customers find the loan that suits them best. That’s because we take into consideration our customer’s individual needs and financial situations. At Norton Finance, rather than taking a “one size fits all” approach by offering a single product, we scour the market in search of what’s available. This means we can better serve you and offer the service you need.

With Norton Finance you get the flexibility to borrow anything from £3,000 to £500,000, over 1 to 30 years.

We make an “in principle” decision on your application within 24 hours of receiving it. Once a decision is made you can expect to receive a direct payment in around 14 days

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Representative example

SECURED LOANS - Rates start at 6.59% variable. We also have a range of plans with rates up to 36.6%, giving us the flexibility to help you find a loan that suits your needs.

Representative example: if you borrow £34,480 over 10 years, initially on a fixed rate for 5 years at 7.60% and for the remaining 5 years on the lenders standard variable rate of 8.10%, you will make 60 monthly payments of £467.50 and 60 monthly payments of £473.06.

The total repayable would be £56,528.60 ( This includes a lender fee of £595 and a broker fee of £4137) The overall cost for comparison is 11.3% APRC representative.

The maximum APR is 36.6%.

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Loan details

At Norton we offer customers flexibility and a straightforward loan process, with access to around 600 products from our panel of expert lenders. We offer plenty of options around maximum loan amounts and repayment terms, giving you complete control of your finances.

How much can I borrow?

With Norton Finance you can borrow anything from £3,000 up to £500,000 through our trusted panel of loan lenders.

How long are the repayment terms?

We offer customers a repayment plan that works for them starting from one to 30 years.

What are the interest rates?

Interest rates will vary depending on your financial history and individual circumstances. Homeowner rates typically start at 6.59%.

Are there any loan fees?

We compare loans rather than offering a single product, and we receive a commission from the lender upon the completion of a loan. We may charge a broker’s fee of up to 12.5% of the loan amount borrowed, capped at £3,995. We do not charge broker fees on unsecured loans.