Introduction [Loans collected from home / Home loan collection]

“Loans collected from home” — sometimes called home collection loans or home credit — are a distinctive part of the UK consumer-credit landscape. For many households, particularly those on low or irregular incomes or without easy access to mainstream banking, the ability to borrow small amounts and repay in regular instalments collected at home has been a lifeline. In parallel, the phrase can also describe loans secured on your home (homeowner or property-secured loans) where repayments are set up at the borrower’s address (direct debits, standing orders), but the key difference is scale, servicing, and regulation.

This article explains everything a OneShekel reader needs to know about loans collected at home in the UK, how they work, who uses them, the regulatory and consumer-protection landscape, the major companies, eligibility and documentation, real examples, advantages, disadvantages and downsides, alternatives, and practical guidance for safe borrowing. We’ll also include clear comparisons with bridging loans, secured homeowner loans, and mainstream bank lending.

Table of contents

1. Definitions: What “loans collected from home” actually means

2. Types of home-collected loans in the UK

3. How home credit (doorstep) loans work — mechanics and repayment

4. Homeowner / property-secured loans collected at home — how they differ

5. Who uses home collection loans? Typical borrower profiles

6. Eligibility and documentation requirements

7. Leading providers and brands (overview)

8. Example case studies and worked numbers

9. Advantages of home collection loans

10. Disadvantages and downsides — what to watch out for

11. Regulation, consumer protections and redress (FCA, Financial Ombudsman)

12. Cost comparison: Home credit vs unsecured personal loans vs secured homeowner loans

13. How to choose the right loan for your needs — a practical checklist

14. Safer alternatives and signposts to help services

15. FAQs (targeted long-tail queries)

16. Conclusion: Key takeaways and safe borrowing tips

Definitions: What “loans collected from home” actually means

Home collection loans is a broad phrase that typically refers to two distinct models:

1. Home credit / doorstep loans — small, short-term consumer loans where a representative of the lender visits the borrower’s home (or an agreed collection point) and collects weekly or monthly repayments in cash or by other means. Historically known as “doorstep lending,” these loans are usually small amounts (£50–£3,000) repaid over months or a few years.

2. Homeowner or property-secured loans collected at home — larger loans secured against the borrower’s residential property (equity release, secured homeowner loans, secured personal loans). Repayments are normally made by direct debit or standing order from the borrower’s bank account. While not typically “collected by hand,” the phrase “collected from home” may be used in marketing to indicate that servicing and account management happen at the borrower’s residence or via an assigned collector.

This guide covers both models, focusing on doorstep/home credit loans (the classic “collected at home” product) but also explaining secured homeowner loans because consumers sometimes conflate the terms.

Types of home-collected loans in the UK

A. Doorstep / Home Credit Loans (Small-ticket lending)

• Typical amounts: £50 to £3,000

• Repayment frequency: Weekly or monthly collections; short to medium terms

• Provider profile: Specialist home-credit companies (often with local collectors), some community lenders

• Target market: Customers with limited credit histories, low income, or preference for in-person collections

B. Secured Homeowner Loans (Property-Secured)

• Typical amounts: £5,000 to £500,000+ (depending on equity)

• Repayment: Monthly direct debit, sometimes bespoke payment plans

• Security: Charge or mortgage on the property

• Target market: Homeowners who need larger sums (home improvements, consolidation)

C. Bridging Finance (Short-term property loans)

• Typical use: Short gaps between purchase and sale, quick purchases

• Repayment: Short durations (weeks–months), often with interest rolled up

• Collections: Paid from borrower’s account; not “doorstep” collections

D. Community and Local Council Loan Schemes

• Small emergency loans sometimes offered by credit unions or councils with local collection or collection support

How home credit (doorstep) loans work; mechanics and repayment

Application & Approval

• Initial contact: Borrower calls lender or is contacted by a local agent.

• Assessment: Lender assesses income (pay slips, bank statements), affordability and identity. Criteria may be more flexible than mainstream banks.

• Agreement: Loan contract outlines principal, fee structure, term, total repayable, collection schedule and collector identity.

Disbursement

Cash or bank transfer: Funds are often handed in cash (historically) or transferred to the borrower’s account.

Collection

• Collector visits: An assigned collector visits the borrower’s home at agreed times to collect repayments in cash or take a payment card.

• Receipts: Reputable lenders provide a written receipt or payment record. Modern home-credit companies increasingly use handheld devices to record payments and provide digital receipts.

Interest & Fees

• Doorstep lenders in the UK are regulated by the Financial Conduct Authority (FCA) and must publish APR, total cost of credit and adhere to affordability checks. However, APRs for doorstep loans are typically high compared with mainstream personal loans.

Example repayment schedule

Borrower takes a £500 loan for 12 months with a total charge of £180. Weekly repayment: £500/52 + approx £3.46 interest — lender will present the exact weekly amount and total payable.

Homeowner and property-secured loans collected at home — how they differ

Secured homeowner loans are fundamentally different from doorstep loans:

• Security: The loan is secured on the property — lenders register a legal charge (mortgage) against the home. Default risk for borrower is higher (repossession).

• Amounts and tenor: Much larger amounts and longer terms (5–30 years).

• Rates: Typically lower interest rates than unsecured loans because of security.

• Collections: Repaid by direct debit; lenders rarely collect cash in person.

• Regulation: Heavily regulated by the FCA and assisted by mortgage law (PRA and FCA interplay for regulated mortgages).

These loans are often advertised with the convenience of home-based servicing, but they are not door-to-door collections and are significantly more formal.

Who uses home collection loans? Typical borrower profiles

Doorstep / Home Credit Borrowers

• Low or irregular income (shift workers, zero-hours contract employees)

• Limited or poor credit history (often declined by mainstream banks)

• Elderly or digitally excluded customers preferring face-to-face service

• Households needing quick cash and willing to pay higher costs

Homeowner / Secured Loan Borrowers

• Homeowners with significant equity seeking large funds for renovation, debt consolidation, or business liquidity

• Borrowers with better credit profiles but preferentially seeking lower interest rates via security

• Borrowers needing bespoke lending for nonstandard properties (rural homes, non-standard construction)

Eligibility and documentation requirements

For Doorstep / Home Credit Loans

• Proof of ID: Passport, driving licence, or other photo ID

• Proof of address: Utility bill, council tax bill

• Proof of income: Payslips, bank statements, benefit letters

• Age: 18+ (must be of legal borrowing age)

• Bank account: Not always required historically, but many lenders use bank transfers or cards

• References: Sometimes two referees or guarantor information

• Affordability checks: Lenders must perform affordability checks (FCA rules)

For Secured Homeowner Loans

• Proof of ownership: Title deeds, land registry entries

• Valuation: Lender requires valuation to confirm equity

• Income documentation: Payslips, tax returns, pension statements

• Credit check: Standard credit checks will be performed

• Legal documentation: Mortgage deed, solicitor involvement for charge registration

Leading providers and brands (overview)

Below is a non-exhaustive list of companies with significant presence in the UK market across the home credit and secured homeowner loans spectrum. This list is illustrative and should be verified for the latest products, rates, and FCA authorisation.

Doorstep / Home Credit Providers

• Loans at Home (Non-Standard Finance plc) — One of the largest specialist home collection lenders in the UK, operating local collectors.

• Provident Personal Credit (historic brand; operations evolved over time) — Well known in the doorstep lending space historically; operations and brand arrangements have shifted after regulatory scrutiny.

• Home Credit UK — International group operating small-ticket home-visit lending.

• Local community lenders / credit unions — Many local credit unions offer small loans with flexible repayment; some support in-person collection for vulnerable customers.

Secured Homeowner Loans (examples of lenders operating in UK market)

• Pepper Money UK — Specialist in homeowner loans and mortgages for non-standard borrowers.

• Together Money — Specialist lender offering secured homeowner loans and flexible product sets.

• Norton Finance — Secured loan broker and lender with homeowner products.

• Habitat Loans — Focuses on secured homeowner borrowing.

• High-street banks and building societies (via mortgage products) — Offer secured lending for homeowners at competitive rates.

Note: Always check the FCA register for current authorisation before recommending any provider.

Example case studies and worked numbers

Case A — Doorstep/Home Credit Loan (Practical Example)

Scenario: Mrs. A needs £600 to repair a boiler. She has a limited credit history and prefers weekly payments collected at home.

• Loan principal: £600

• Term: 52 weeks (1 year)

• Total charge: £150 (includes interest and fees)

• Total repayable: £750

• Weekly repayment: £14.42

Outcome: Mrs. A pays the collector £14.42 each week at her home. She receives a weekly receipt or digital payment confirmation via handheld device.

Case B — Secured Homeowner Loan (Example)

Scenario: Mr. B is a homeowner with significant equity and wants £50,000 to renovate the property.

• Loan principal: £50,000

• Term: 10 years

• Interest rate: 6.5% fixed APR (example rate)

• Monthly repayment: Approx £567 (principal + interest)

• Security: Second legal charge registered against the property

Outcome: Mr. B’s lender registers a charge and takes monthly repayments by direct debit. The interest rate is lower than an unsecured loan because of security.

Comparative table

These figures are illustrative. Real APRs and repayments depend on creditworthiness, lender pricing, and regulatory caps.

Advantages of home collection loans

Doorstep / Home Credit Advantages

• Accessibility: Serve customers excluded from mainstream credit.

• Human touch: Personal collectors build relationships, aiding those who are digitally excluded or prefer face-to-face service.

• Small ticket flexibility: Borrow small amounts with short terms.

• Budgeting aid: Weekly collections can help borrowers budget by spreading repayments.

• Speed: Quick decision and disbursement in many cases.

Secured Homeowner Loan Advantages

• Lower interest rates: Security on property reduces lender risk and the borrower’s APR.

• Larger sums: Can access tens or hundreds of thousands of pounds.

• Longer terms: Easier to manage monthly payments.

• Use cases: Good for home improvements, consolidation of expensive unsecured debts, or large purchases.

Disadvantages and downsides — what to watch out for

Doorstep / Home Credit Downsides

• High cost: APRs are often much higher than mainstream personal loans; the convenience premium is significant.

• Stigma and pressure: Some borrowers feel embarrassed or pressured by collectors; poor practices have occurred historically.

• Risk of over-borrowing: Frequent small loans can create a debt spiral.

• Hidden charges: Missed payments, collection fees and default charges can escalate the total cost.

• Limited regulation historically: While FCA regulation has improved protections, doorstep lenders in past were associated with poor conduct.

Secured Homeowner Loan Downsides

• Risk of repossession: Failure to repay a secured loan can lead to losing your home.

• Valuation and fees: Valuation, arrangement and legal fees add to cost.

• Long-term commitment: Extending payments over decades can mean paying substantial interest.

• Complexity: Legal paperwork and mortgage terms can be hard for ordinary borrowers to navigate.

Regulation, consumer protections and redress (FCA, Financial Ombudsman)

The Financial Conduct Authority (FCA) regulates consumer credit in the UK, including doorstep/home credit and secured loans. Key protections include:

• Affordability checks: Lenders must ensure loans are affordable and sustainable.

• Clear information: APR, total charge for credit, and total repayable must be disclosed.

• Treating Customers Fairly (TCF): Firms must act fairly and transparently.

• Vulnerability guidance: FCA requires firms to identify and support vulnerable customers (e.g., elderly, learning difficulties).

• Complaints and redress: If a customer has a complaint and the lender cannot resolve it, the Financial Ombudsman Service (FOS) can rule on disputes. Successful complaints may yield refunds, repayments, or adjustments.

Recent regulatory focus: The FCA has increased scrutiny of high-cost credit and vulnerable customers. It has published guidance for lenders providing home credit, including the expectation to avoid abusive practices and ensure collectors are properly trained.

Cost comparison: Home credit vs unsecured personal loans vs secured homeowner loans

Key cost drivers

• APR — annual percentage rate shows the cost of credit including fees. For small short-term loans, APR looks very high because of the small principal and fixed fees.

• Total charge for credit — helpful for comparing small loans.

• Security — whether the loan is secured (lower rates) or unsecured (higher rates).

Typical observed ranges (illustrative)

• Doorstep / home credit: APRs frequently high; 50%–200% APR is not uncommon in past market examples for small, short-term loans. Modern FCA oversight requires affordability checks and clearer disclosure.

• Unsecured personal loan: 5% to 30% APR depending on credit score and term.

• Secured homeowner loan: 3% to 10% APR for borrowers with equity and good credit — but higher for non-standard properties or riskier borrowers.

Comparison table (example)

Always compare the total amount repayable, not only APR.

How to choose the right loan for your needs — a practical checklist

1. ADefine your real need: Emergency (boiler repair) vs long-term investment (extension).

2. Check affordability: Can you afford repayments without hardship? Use a simple budget.

3. Compare quotes: Look at total repayable, not just monthly payments.

4. Consider security: Never secure an everyday loan on your house unless you fully understand the risk.

5. Check regulation: Only borrow from FCA-authorised lenders.

6. Ask for receipts: For doorstep collections always insist on written or digital receipts.

7. Look for alternatives: Credit unions, family loans, or local authority help for emergencies.

8. Read the small print: Fees, default charges, early repayment terms.

9. Plan an exit: How will you clear the loan if circumstances change?

10. Seek advice: Citizens Advice, StepChange, or other debt charities can advise.

Safer alternatives and signposts to help services

Safer borrowing alternatives

• Credit unions: Community-based not-for-profit lenders offering affordable small loans and repayment flexibility.

• Priority or hardship funds: Local councils and charities sometimes offer crisis grants.

• Mainstream overdrafts or credit cards: For short needs, sometimes cheaper but requires responsible use.

• Family or friend loans: Often cheaper but should be formalised to avoid disputes.

Advice and support services (UK)

• Citizens Advice — free independent advice on debt and borrowing.

• StepChange — debt advice and free debt management plans.

• National Debtline — free helpline and online resources.

• MoneyHelper (formerly The Money Advice Service) — practical guides on borrowing and budgeting.

• Financial Conduct Authority (FCA) — check the register and guidance for borrowers.

Frequently Asked Questions On Home collection loans | Doorstep loans

Q1: Are home collection loans legal in the UK? Yes. Doorstep or home credit loans are legal and regulated by the FCA. Lenders must comply with rules on transparency, affordability and treating customers fairly.

Q2: Who should consider a doorstep loan? Only those who genuinely cannot access cheaper alternatives and who can clearly meet repayments without harm. Consider credit unions or local support first.

Q3: Can a home collector enter my home to take payment? Collectors should only collect at agreed times and with consent. If you feel pressured or threatened, contact the lender’s complaints service and consider involving the police for harassment.

Q4: Are doorstep loans expensive? Typically yes. They carry higher costs per £ borrowed than mainstream loans. The convenience and access for vulnerable borrowers are factors but come at a higher price.

Q5: What happens if I miss a doorstep loan payment? Lenders usually follow a process: reminder, further attempts, and potentially default proceedings. The FCA requires fair treatment, but missed payments often lead to increased costs and collection action.

Q6: Is it safe to secure a loan on my home? Securing a loan on your home reduces interest rates but increases the risk of repossession if you default. Only proceed with full understanding and legal advice.

Q7: How can I check a home credit lender is legitimate? Search the FCA register for the firm’s authorisation number. Check reviews, complaints history, and whether the firm follows FCA guidance on vulnerable customers.

Conclusion: Key takeaways and safe borrowing tips

Loans collected from home encompass a spectrum from doorstep/home credit to secured homeowner lending. Each serves different needs, with trade-offs between accessibility, cost, and risk.

• Doorstep/home credit can help those excluded from mainstream finance but is often expensive and carries the risk of debt traps. Use only when safer alternatives (credit unions, social funds) are unavailable.

• Secured homeowner loans can deliver lower rates and larger sums but place your home at risk — treat them as serious, long-term commitments.

• Regulation (FCA) provides important protections but does not remove the need for borrower diligence. Know your rights, insist on written receipts, and seek help if you struggle with repayments.

Practical actions for readers

1. Compare total cost, not just monthly payments.

2. Call Citizens Advice or MoneyHelper before taking high-cost credit.

3. If visited by a collector, ask for ID and a receipt. Don’t sign without understanding terms.

4. For large sums, consult an independent adviser and ensure legal charge paperwork is clear.