Remortgages And Secured Loans Can Both Be Used For Many Purposes.
Remortgages and secured loans are both forms of homeowner loans. However there are differences between these two financial products that most people are unaware of.
To be eligible for either a remortgage or a secured loan you must be a homeowner, as both have to be secured on the equity of a property which can be a first or a second home. They both can be used for numerous reasons.
Sometimes in the case of a remortgage the borrower only wants a like for like remortgage which means that he is replacing his current mortgage with a remortgage of the same value, but which incurs a lower rate of interest. He has an existing mortgage of 210,000 and takes out a remortgage with a different mortgage lender again for 210,000, but the repayment is less each month.
Mainly additional funds are requested when a homeowner remortgages, exactly as happens with the secured loan.
When a homeowner wants to carry out home improvements the best way is to arrange a remortgage or a secured loan. This applies to all sorts of home improvements, and using a secured loan or remortgage will cost a fraction of the cost than a loan taken out through a home improvement company.
You are not tied to any one company by taking out a secured loan or a remortgage for home improvements as you would be with the home improvement company.You will have the ready funds available to pay cash and as such get yourself the best deal.
Remortgages and secured loans can also be the way of paying for an exotic far flung holiday, a wedding, to buy a boat, etc. etc.
There are pros and cons with remortgages and secured loans. Remortgages normally take well over a month to even six to eight weeks to pay out and the secured loan should be paid out in less than three weeks. Therefore if speed is of the essence you may be best to go down the secured loan route, although bear in mind that a remortgage will in general have a lower interest rate than the secured loan.
The main difference between a remortgage and a secured loan is that the remortgage pays of your existing mortgage, and with the secured loan your current mortgage remains in place and the secured loan is a second mortgage secured on the equity of your property.
Related posts on loans for people with bad credit:
- Remortgages And Secured Loans Are The Best Way For Homeowners To Borrow. There are all sorts of loans out there both unsecured and secured and two very popular types of loans are remortgages and secured loans. Both secured loans and remortgages are only granted to those who own the property in which they live as they need to be secured against the...
- Remortgages And Mortgages Before And During The Recession. Mortgages and remortgages along with secured loans are all types of loans that are secured on property. Therefore these financial products are only available to those who own their own home, and are not in rented property.....
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- Am I Better To Apply For A Remortgage Or A Secured Loan? If a homeowner wants to obtain finance for a number of purposes there are two real options of doing this, and these two ways are either by means of a secured loan or a remortgage....
Tagged with: home improvements • home loans • mortgages • real estate • refinance • refinancing • remortgages • secured loans
Filed under: refinance
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