The Difference Between Remortgages And Secured Loans

While remortgages and secured loans are similar types of home loans, they are also different in many ways

The main thing that they have in common is that they are both secured on the equity of a property.

The other term for secured loans is homeowner loans for the reason that only those who own their properties are eligible to apply.

Equity is the difference between what a house is worth and the balance of the mortgage that is secured on it.

Before the recession it was possible to obtain secured loans at 125%, but now the maximum is 70% for the self employed and 80% for others.

Similarly the Northern Rock offered both mortgages and remortgages at up to 125% with remortgages of 100% available from most lenders.

The maximum LTV for remortgages has fallen to 90% which is higher than for secured loans.

Self certifications of income used to be acceptable fom the self employed for both a remortage and secured loans but all that also changed.

For some time no lender accepted self certs for either homeowner loans or remortgages but this has altered in favour of secured loans

These self employed loans on self certs for those who cannot produce accounts will prove very useful to those who are no longer eligible for a remortgage.Yet they should be a good way for someone who cannot obtain a remortgage to obtain the money required.

Both remortgages and secured loans can be used for all the same reasons, from paying for a holiday, carrying out home improvements and they also make excellent debt consolidation loans

One thing that secured loans and remortgages have in common is their multitude of uses including paying for school fees right through to debt consolidation.

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categories: secured loans,homeowner loans,refinancing,debt consolidation,mortgage,remortgage,finance

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