Homeowner Business Loans

Q: Do I need to remortgage to release equity for my business?

No. A Homeowner Business Loan is secured as a second charge behind your existing residential mortgage. This allows you to keep your current mortgage in place.

Q: Can I get a Homeowner Business Loan if I’m self-employed?

Yes. We consider applications from self-employed business owners, sole traders and company directors. We manually assess each application based on the full circumstances rather than relying on employment status alone.

Q: Can a limited company apply?

Personal and limited company applications may be considered. The appropriate structure will depend on who owns the property, who is borrowing and how the funds will be used.

Q: Can I use the loan to start a new business?

Funding for a new business venture may be considered. You’ll need to explain how the money will be used and provide a credible plan for repaying the loan.

Q: How quickly can a Homeowner Business Loan complete?

Funds may be available in as little as 48 hours. Actual completion times depend on the application, valuation, legal requirements and how quickly the required information is provided.

Q: How is a Homeowner Business Loan repaid?

Depending on the product selected, you may make monthly payments or repay the borrowing and accumulated interest at the end of the term. Short-term loans require a clear exit strategy.

Q: Is a Homeowner Business Loan regulated by the FCA?

No. Mercantile Trust’s Homeowner Business Loans are for business or investment purposes and are not regulated by the Financial Conduct Authority.

Q: What are the risks for Homeowner Business Loan?

The loan is secured against your residential property. If you cannot make the required payments or repay the loan at the end of the term, your property could be at risk. You should also consider the interest, fees, total repayment amount and effect of adding further borrowing to your home before proceeding.

Use the equity in your home to raise funds for your business without replacing your existing residential mortgage.

Borrow from £25,000 to £500,000
Second charge loans secured against your residential property
Bridging and term loan options available
Borrow up to 75% loan-to-value
Pay monthly or at the end of the agreed term
Adverse credit considered
Funds possible in as little as 48 hours
Available across England, Scotland, Wales and Northern Ireland

Enquire Now

What is a Homeowner Business Loan?

A Homeowner Business Loan is a secured loan that allows you to borrow against the equity in your home for business or investment purposes.

At Mercantile Trust, this is offered as a second charge loan. This means the loan is secured behind your existing residential mortgage, allowing you to keep your current mortgage in place rather than remortgaging.

You receive a separate loan with its own interest rate, term and repayment arrangements. Your existing mortgage continues as normal.

A Homeowner Business Loan may be suitable if you’re self-employed, run a limited company or need to release capital from your home for a time-sensitive business opportunity.

0800 032 3737

Homeowner Business Loans at a glance

Feature	Mercantile Trust criteria
Loan amount	£25,000 to £500,000
Security	Your main residential property
Charge	Second charge only
Maximum LTV	Up to 75% loan-to-value
Minimum property value	£75,000
Loan options	Bridging and term loans
Purpose	Business or investment purposes only
Repayment	Pay monthly or at the end of the term
Applicants	Personal and limited company applications considered
Credit history	Adverse credit considered
Property types	Most construction types considered
Location	England, Scotland, Wales and Northern Ireland
Completion speed	Funds possible in as little as 48 hours

The property must already have a residential mortgage because the Homeowner Business Loan is available as a second charge only.

Case study: Homeowner Business loan completed in 7 days

What can a Homeowner Business Loan be used for?

The funds can be used for a wide range of legal business or investment purposes, including:

Expanding an existing business
Starting a new business venture
Purchasing equipment, machinery or vehicles
Buying stock or inventory
Supporting short-term business cash flow
Refurbishing or relocating business premises
Funding a deposit for an investment property
Investing in a buy-to-let property
Consolidating or replacing expensive business borrowing
Recruiting employees
Funding marketing or other growth activity

We’ll need to understand how you intend to use the funds and how the loan will be repaid.

If you want to raise funds against a rental property rather than your home, explore our Buy-to-Let Business Loans.

How does a second charge Homeowner Business Loan work?

Your existing residential mortgage is the first charge against your home. A Homeowner Business Loan is registered as a second charge behind it.

This allows you to access some of the equity in your property without replacing your current mortgage.

You’ll continue to repay your existing mortgage. Depending on the Homeowner Business Loan selected, you may pay the loan interest monthly or arrange for it to be paid at the end of the agreed term.

Because the loan is secured against your home, you must have a clear and realistic plan for repaying it.

How much can you borrow against your home?

Mercantile Trust can consider Homeowner Business Loans from £25,000 to £500,000, up to a maximum of 75% loan-to-value.

The amount available will depend on:

The current value of your property
The balance of your existing residential mortgage
The equity available in your home
The amount you want to borrow
How the funds will be used
Your proposed repayment strategy
Your wider financial circumstances

Enquire Now

Bridging or term Homeowner Business Loan?

We offer both short-term bridging and longer-term loan options. The most suitable structure will depend on why you need the funds and how you plan to repay them.

Short-term bridging loan

A bridging Homeowner Business Loan may be suitable when you need funds quickly and have a clear exit strategy, such as:

Refinancing onto longer-term finance
Selling another property
Receiving funds from an investment
Repaying the loan from future business income or profits

Interest may be paid monthly or rolled up and repaid at the end of the term, subject to the product selected.

Term loan

A term loan may be more appropriate when you want to spread repayments over a longer period and make regular monthly payments.

Our team will review your requirements, cash flow and repayment plans before explaining the available options.

Who can apply for a Homeowner Business Loan?

We may be able to consider your application if:

You own a residential property with an existing mortgage
You have sufficient equity in the property
Applicants aged 18 to 85 years at the end of the loan term
Personal applicants and limited company borrowers accepted
The funds will be used for business or investment purposes
The property is in England, Scotland, Wales or Northern Ireland
You are either a British citizen, or you have indefinite leave to remain and have lived in the UK for at least three years.
The property is worth at least £75,000
We can also consider applicants with complex income arrangements or previous credit problems.

Every application is assessed individually.

Can you get a Homeowner Business Loan with adverse credit?

Yes, adverse credit doesn’t automatically prevent you from getting a Homeowner Business Loan.

We use manual underwriting and consider the circumstances behind previous credit problems, together with the property, available equity, intended use of funds and repayment strategy.

This means we may be able to consider applications involving historic missed payments, defaults or County Court Judgements. Acceptance isn’t guaranteed and will depend on your overall circumstances.

Application process

Submit your enquiry

Receive an initial lending decision

Property valuation instructed

Legal work completed

Funds released

Why choose Mercantile Trust for Homeowner Business Loans?

Mercantile Trust is a specialist UK lender providing fast, flexible bridging finance. We manually assess each application, considering the property, borrower and exit strategy.

What Makes Us Different?

Dedicated bridging specialists
Manual underwriting approach
Fast decisions and completions
Adverse credit considered
Automated valuations available in some cases
Flexible repayment options
No early repayment charges on selected products
Lending throughout the UK including Scotland and Northern Ireland

A clear application process

No upfront application fees
No broker fees when applying directly
No obligation to proceed
No hard credit check at the initial enquiry stage – we use a soft search, which won’t affect your credit score.

Our bridging loans are not regulated by the Financial Conduct Authority (FCA), but we remain committed to responsible lending and clear support throughout the process.

Your property may be repossessed if you do not keep up repayments on a debt secured against it.

Ready to get started?

We are here for anyone who needs flexible and tailored loan solutions. Whether you have complex income, have imperfect credit, are employed or self-employed, or need faster access to funds than a high street lender can offer — we’re here to help.

Let’s discuss how we can help your next investment. Speak to an expert.