Remortgage or personal loan?

The key difference: secured versus unsecured

A remortgage, further advance or second charge mortgage is secured against your home. A personal loan is usually unsecured. Secured borrowing often offers lower interest rates and larger amounts, but your home is at risk if you do not keep up repayments. Unsecured borrowing does not put your home directly at risk, but rates are often higher and amounts smaller.

When a remortgage might suit you

Remortgaging to release equity may suit larger sums, home improvements or consolidating debts, particularly if your current deal is ending or has no early repayment charge. Compare the full cost of leaving your existing deal, product fees and the total interest over the new term—not just the headline rate.

When a personal loan might suit you

A personal loan may suit smaller amounts repaid over a shorter term, or when leaving your current mortgage deal would be expensive. Shorter terms can mean higher monthly payments but less interest overall. Eligibility and rates depend on your credit history and affordability.

The middle ground: further advances and second charges

A further advance from your existing lender or a second charge mortgage can raise funds while keeping your current mortgage in place. These create additional secured borrowing and repayment commitments, so compare the overall cost of every option rather than assuming one route is always cheaper.

Compare the total cost, not the monthly payment

Spreading borrowing over a longer term can reduce monthly payments while increasing the total interest paid. Whatever route you consider, compare the interest rate, all fees, any early repayment charges, the term and the total amount repayable. If you are consolidating debts, remember that securing previously unsecured debts against your home puts your property at risk.

How we can help

We review your current mortgage, income, outgoings, property and plans, then explain suitable options, fees, risks and total repayment costs before you decide. An initial consultation is no obligation, and no lender approval is guaranteed.

Common questions