The Comparison Between Secured Loans And Remortgages.

People need or want extra money at times for whatever reason and for those who own their own home they have a number of choices.

Loans divide into two main groups and these are unsecured loans or secured ones. The secured version of loan is called strangely enough a secured loan or sometimes called a homeowner loan. A remortgage is another form of secured loan.

As an unsecured loan is exactly as the name tells us and as such needs no security both those who own their own home and those who do not are both eligible to apply.

It has always been a problem being approved for unsecured loans as the loan lender has no cast iron guarantee the all repayments will be made. The underwriting is very strict and it is only blue chip applicants who are accepted.

Even for those who fulfil the strict underwriting concerned, interest rates are normally very high.

Homeowner loans on the other hand require to be secured against a firm asset and this is the equity available on the actual property itself.

Homeowner loans therefore have pretty acceptable interest rates currently at about 9% and they are a good way for a homeowner to raise money when he requires it.

The multitude of uses for homeowner loans makes them an excellent loan for homeowners to raise funds for a huge variety of uses.

Another attractive aspect about homeowner loans is that they have very flexible repayment periods from sixty months to as many three hundred months meaning that the payments can fit most budgets.

Remortgages are very much the same as homeowner loans and are also secured on property.

Just like secured homeowner loans, remortgages can buy or pay for most things that your heart could possibly desire.

Remortgages are when a homeowner pays off his mortgage with his current lender and moves to a new mortgage provider.

Remortgages have rates of interest starting at 1.84% which are cheaper than homeowner loans but they can be the better choice if the applicant is in a tie in period with his current mortgage lender and would have an early repayment penalty if settling the mortgage early.

Therefore in the tie in period a homeowner loan could well be preferable.

Whatever the choice remortgages or homeowner loans are good ways for homeowners to obtain a loan.

Both are however great loans.

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categories: homeowner loan,homeowner loans,secured loan,secured loans,remortgage,remortgages,debt consolidation,debt advice,debt help

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