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HELOC - Home Equity Line Of Credit

UK HELOC Lenders and Banks

Scott Nelson MoneyNerd Janine Marsh MoneyNerd
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Scott
Scott Nelson MoneyNerd

Scott Nelson

Debt Expert

Scott Nelson is a renowned debt expert who supports people in debt with debt management and debt solution resources.

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Janine
Janine Marsh MoneyNerd

Janine Marsh

Financial Expert

Janine is a financial expert who supports individuals with debt management, cost-saving resources, and navigating parking tickets.

Learn more about Janine
· May 24th, 2024
Looking for a HELOC? £5,000 to £2.5 million available, compare deals below.

How much do you want to borrow?

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Representative example: If you borrow £34,000 over 15 years at a rate of 8.26% variable, you will pay 180 instalments of £370.70 per month and a total amount payable of £66,726.00. This includes the net loan, interest of £28,531.00, a broker fee of £3,400 and a lender fee of £795. The overall cost for comparison is 10.8% APRC variable. Typical 10.8% APRC variable

Representative example: If you borrow £34,000 over 15 years at a rate of 8.26% variable, you will pay 180 instalments of £370.70 per month and a total amount payable of £66,726.00. This includes the net loan, interest of £28,531.00, a broker fee of £3,400 and a lender fee of £795. The overall cost for comparison is 10.8% APRC variable. Typical 10.8% APRC variable

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uk heloc lenders and banks

Representative example: If you borrow £34,000 over 15 years at a rate of 8.26% variable, you will pay 180 instalments of £370.70 per month and a total amount payable of £66,726.00. This includes the net loan, interest of £28,531.00, a broker fee of £3,400 and a lender fee of £795. The overall cost for comparison is 10.8% APRC variable. Typical 10.8% APRC variable

Are you searching for details about UK home equity lines of credit (HELOC)? You’re not the only one. Each month, over 6,900 people visit our website seeking advice on secured loans.

We know it can be a bit tricky to understand, especially the bit about how they work and the risks involved. But don’t worry; in this easy guide, we’ll explain:

  • What a HELOC is.
  • The real cost of a bad HELOC deal.
  • How a HELOC is different from other types of credit.
  • Where you can apply for a HELOC in the UK.
  • The process of getting a secured loan.

In the UK, early repayment fees for secured loans have more than doubled since the start of the decade, peaking in 2018.1 We understand that you might be worried about the possible problems of a secured loan. Maybe you’re even in debt.

Whatever your situation, remember you’re not alone — many people are in the same boat. We’re here to give you clear and simple advice.

So, let’s start learning more about UK HELOC lenders and banks together.

Get your HELOC deals

Answer the questions below to compare deals – won’t affect your credit score.

How much do you want to borrow?

Search powered by our partners at LoansWarehouse.

Representative example: If you borrow £34,000 over 15 years at a rate of 8.26% variable, you will pay 180 instalments of £370.70 per month and a total amount payable of £66,726.00. This includes the net loan, interest of £28,531.00, a broker fee of £3,400 and a lender fee of £795. The overall cost for comparison is 10.8% APRC variable. Typical 10.8% APRC variable

Are HELOCs Available in the UK?

HELOCs were developed in the USA, and it has only been in recent years that the same kind of product has been available in the UK. 

However, it can be very hard to find a lender that offers a HELOC. Some banks may do, but only to the right borrowers. Put simply, a HELOC is not a mainstream product for banks in the UK at the time this post was published. A bank may be willing to tailor a lending product to you though, but this will depend on your financial situation.

There are a few independent lenders that offer a product that is very similar to a HELOC though.

Where’s the Best Place To Apply?

Currently, the best way to apply for a HELOC is to use one of the independent financial firms that offer this kind of product. Most of these operate a website that has a simple online quote system. Once you have your quote, you can choose to have the lender contact you to discuss matters further. However, do spend some time checking to see if your bank has a similar product available.

In general, HELOC interest rates from a bank are likely to be lower than those offered by independent lenders. You should shop around and find out which lender is prepared to give you the most competitive interest rate and terms for a HELOC or similar type of product.

Change the amount you are looking to borrow to see what offer you could get

£

Lender

APRC

Monthly payment

Total amount repayable

United Trust Bank Ltd

5.99%

£218.73

£26,247.92

Pepper Money

6.86%

£220.24

£26,429.17

Together

6.95%

£220.40

£26,447.92

Selina

7.5%

£221.35

£26,562.50

Equifinance

7.7%

£221.70

£26,604.17

Spring

10.5%

£226.56

£27,187.50

Loan Logics

11.2%

£227.78

£27,333.33

Evolution

11.28%

£227.92

£27,350.00

Representative example: If you borrow £34,000 over 15 years at a rate of 8.26% variable, you will pay 180 instalments of £370.70 per month and a total amount payable of £66,726.00. This includes the net loan, interest of £28,531.00, a broker fee of £3,400 and a lender fee of £795. The overall cost for comparison is 10.8% APRC variable. Typical 10.8% APRC variable.

Search powered by our partners at LoansWarehouse.

The true cost of a bad HELOC deal

There are no early repayment fees.

Almost every other loan product includes a whooping charge if you want to repay early (they want you paying them as long as possible!).

HELOCs are far more flexible, allowing you to repay early and draw more credit out at will.

Answer the short form below to access the best HELOC rates available.

Can I Get One at Any Bank?

Although HELOCs are becoming more common in the UK, not every bank offers such a product. Whether your bank is willing to offer you a HELOC will depend on which bank you use, and your eligibility for such a financial product.

However, there are a number of independent financial firms that do offer a HELOC, or a product very much like a HELOC. We have listed a few below.

HELOC deals for all purposes

  • Stuck paying high interest on credit card debts & loans?
  • Looking to fund a home improvement project?
  • Dreaming of finally taking the once-in-a-lifetime trip?

Polly

“This was by far possibly one of the nicest experiences I’ve had getting a secured loan.”

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Reviews shown are for Loans Warehouse. Search powered by Loans Warehouse.

What Banks Are Excluded?

The unfortunate answer here, at the time that this post was published, is that no tier 1 banks in the UK officially offer a HELOC. However, it could well be that the situation has changed by the time you read this post.

Therefore, the best advice is to check with your own bank, and any other high-street bank you feel you would trust to provide a HELOC, to find out if one is on offer, or if a similar product is available.

» TAKE ACTION NOW: Compare deals from the UK’s leading lenders

What Is the HELOC Interest Rate?

HELOC rates are driven by the length of time the HELOC will run for. HELOC rates in the UK often fluctuate as well, depending on the state of the economy. In general, depending on the lender, HELOC rates will be from around 2% to around 10%. Much depends on how much equity you have in your home, how much credit you want, and what your financial situation is. 

Get your HELOC deals

Looking for a HELOC? £5,000 to £2.5 million available, compare deals below.

Loan

Representative example: If you borrow £34,000 over 15 years at a rate of 8.26% variable, you will pay 180 instalments of £370.70 per month and a total amount payable of £66,726.00. This includes the net loan, interest of £28,531.00, a broker fee of £3,400 and a lender fee of £795. The overall cost for comparison is 10.8% APRC variable. Typical 10.8% APRC variable.

Search powered by our partners at LoansWarehouse.

References

  1. Uswitch – UK mortgage statistics, 2023
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The authors
Scott Nelson MoneyNerd
Author
Scott Nelson is a renowned debt expert who supports people in debt with debt management and debt solution resources.
Janine Marsh MoneyNerd
Financial Expert
Janine is a financial expert who supports individuals with debt management, cost-saving resources, and navigating parking tickets.