A Home Equity Line of Credit (HELOC) (sometimes called home equity business credit) is a flexible funding facility secured against your property. It’s designed for UK homeowners who own or run a business and need ongoing access to affordable capital.
Think of it as a hybrid between a mortgage and an overdraft: you have a pre-approved credit limit secured on your home, and you can draw funds whenever needed, repay at any time, and only pay interest on what you actually use.
This makes it ideal for managing cash flow, seasonal expenses, tax bills, refurb projects, or short-term investments, without needing to refinance your existing mortgage or commit to a lump-sum loan.
How it works
Credit secured on your home (usually a second charge)
Draw and repay as needed during a flexible 5-year draw period
Interest charged only on funds drawn
After five years, if you have not fully repaid your limit, the balance converts into a standard repayment term
This gives business owners freedom now to have fast access to any opportunity they see fit with lower rates.
When a HELOC makes sense
A Home Equity Line of Credit can be a strategic tool when you:
Need short-term access to cash without disturbing your main mortgage
Want to bridge a funding gap between projects or invoices
Expect large one-off costs such as a tax payment or property refurbishment
Want funds available quickly while arranging long-term finance later
Are a property investor or business owner looking to act fast on opportunities
It’s particularly useful for directors who want instant access to capital for opportunities like property auctions or discounted stock purchases, where traditional bridging or mortgage finance may take too long to arrange.
Why business owners use HELOCs
Working capital for growth or seasonal cash flow
Tax or VAT bills without disrupting operations
Refurbishment or equipment upgrades
Debt consolidation into one lower-cost facility
Access to investment opportunities, such as property purchases at auction, where bridging or mortgage loans can take time to set up. Having immediate capital available lets you act quickly and organise longer-term funding later.
Borrow from £25,000 to £500,000, over terms of up to 30 years, and stay in control with no early-repayment penalties.
Benefits at a glance
- Flexible access to credit
- Lower interest than unsecured loans
- No need to remortgage
- Pay interest only on what you use
- Borrow, repay, and reuse funds
- Fast approval and simple setup with Finspire
Eligibility
Available home equity, sufficient value above your existing mortgage
Income or business turnover, to confirm affordability
Recent credit conduct, ensuring responsible borrowing
We’ll guide you from initial enquiry to approval, keeping the process transparent and efficient.
Risks and considerations
Because a HELOC is a secured credit facility, it uses your property as collateral.
Like all mortgages, or secured borrowing, that means your home may be at risk if you do not keep up repayments.
Borrowers should always consider affordability. We will discuss these points clearly before any commitment is made.
Next step
If you’re exploring how to release equity from your home to fund your business, a Home Equity Business Credit Line could be the most efficient way to do it. Alternatively, we can assist with an unsecured Revolving Credit Facility (RCF) if you would prefer to look into options that don’t require personal assets as collateral.
Contact Finspire Finance today to discuss your goals and discover how we can help you access fast, affordable capital when it matters most.
FAQs: Home Equity Business Credit (HELOC) UK
Yes. A HELOC is designed to be used for business purposes such as working capital, tax payments, equipment upgrades, or seizing time-sensitive investment opportunities. It’s a flexible, low-cost way to access funds secured against your property.
Unlike a fixed-sum business loan, a HELOC gives you a revolving credit limit you can draw from and repay anytime. You only pay interest on what you use, making it more flexible and cost-efficient.
No. A HELOC is typically arranged as a second charge on your property, meaning your existing mortgage remains unchanged.
Eligibility depends on your property equity, income or business turnover, and recent credit history. Homeowners and company directors with stable finances can usually qualify.
Funds can be used for almost any legitimate business or personal purpose, including cash-flow management, VAT or corporation-tax funding, refurbishments, debt consolidation, or property purchases at auction.
Once valuation and documents are complete, drawdown can often occur within a few working days. After that, your available credit can be accessed instantly.
Finspire can arrange HELOC facilities from £25,000 up to £500,000, depending on your available equity and affordability.
No. You can repay at any time during the draw period without penalty, immediately reducing your interest cost.
Yes, in many cases a HELOC can be secured against a buy-to-let or secondary property, subject to valuation and lender criteria.
Because the facility is secured against your property, your home may be repossessed if you fail to maintain repayments. Borrowers should ensure affordability before proceeding.
