There are all sorts of ways to borrow , but for those who own their property
, remortgages and secured loans are the two best ways of obtaining cash as well as being the loans that attract the cheapest interest rates.
Both secured loans and remortgages are loans that are secured on the asset of a property, and therefore only those who own the property in which they live can make an application.
There are several matters to be taken into the equation when making up your mind that you need to robtain money for whatever reason.
Secured loans can be the method to choose if a homeowner is tied in with a mortgage deal. When someone arranges a mortgage they have to stay with the same mortgage product for a certain number of years and if they remortgage in the course of this period an early repayment penalty applies.
The penalty can come to a considerable sum of money of between 2% to 5% of the outstanding mortgage balance. Therefore during a tie in period secured loans are better, as it is a totally stand alone product that will not interfere with the current mortgage.
When extra money is needed quickly, once again secured loans would be the more suitable of the two, as they pay out in a little more than a fortnight while remortgages take four weeks or very often about six weeks to pay out.
A remortgage is less expensive than a secured loan, and therefore better if a quick pay out is not essential . The interest rates for secured loans start at about 9% while remortgages start at 1.98% which is the lowest in history.
Secured loans at this moment in time cost from about 9% which is still a low rate, but certainly not as low as remortgages.
As such whether remortgages or secured loans are the better choice depends on the different circumstances of the remortgage or secured loan borrower