If a homeowner wants to borrow for a large number of different reasons there are two major methods of doing so, and these two methods are either by taking out secured loans or remortgages.
Both a remortgage or a secured loan are secured kinds of finance and must be secured on property, and as such only homeowners are eligible to make an application. These two loans are the same in that they can be used for almost any purpose providing that it is legitimate.
There are a number of factors to be considered when deciding that you require to raise capital for whatever reason.
Homeowners are tied into a mortgage for several years after the start of the mortgage period and during these years they are required to pay an early repayment penalty if they pay off the mortgage early and this can amount to thousands of pounds.
The early repayment settlement penalty is between 2% to as much as 5% of the outstanding mortgage balance,and if you are talking about a 300,000 mortgage this can cost from 6,000 to 15,000.Therefore if this is the case with the mortgage a secured loan would be the better method of obtaining funds.
If a great bargain of for example of a private sale or something similar turns up making you need the loan in a hurry the secured homeowner loan is the better choice as it takes half the time of a remortgage to obtain. A remortgage can take up to six weeks, and a secured loan can be arranged in less than three weeks.
Remortgages are cheaper than secured loans, and therefore better if a speedy pay out is not important . The interest rates for secured loans start at about 9% while remortgages start at 1.98% which is the lowest in history.
Secured loan rates now start at around the 9% mark which is good but still more expensive than the remortgage.
Both remortgages and secured loans are superb home loans that you can use to buy many a product that otherwise could financially be out of reach.