An unsecured homeowner loan is pretty much just the same as any other type of unsecured loan, a borrower does not need to be a homeowner to obtain an unsecured loan.
As unsecured loans do not require any form of security for the loan, a homeowner unsecured loan is fairly irrelevant. The only advantage which could be gained from a homeowner unsecured loan is if the homeowner has an outstanding mortgage on their property and all the payments are fully up to date, this could have the effect of enhancing an individual's credit rating, as there is a track record of regular repayments, and this in turn could allow the person looking for an unsecured homeowner loan to obtain a slightly better rate than someone with no previous payment history.
Additionally, a lender may be slightly more inclined to offer an unsecured homeowner loan, due to the fact that if the borrower defaults on the loan repayments, the lender is able to apply for a charging order on the property, effectively making the loan a secured one.
