Some Basic Facts About Secured Loans And Remortgages.
There are always times when people decide that they want to take out some sort of
loan and they have heard that remortgages and secured loans are both good methods of borrowing.
The problem is that many people have absolutely no idea as to the first steps towards arranging one of these loans that are only available to homeowners as they need to be secured on the equity of property.
They want to find out the most suitable way to proceed, if they have to pay any fees up front in advance, if a remortgage has a better rate of interest or if a secured loan is cheaper.
Other consideration are regarding what happens if they choose to pay off the home loan sooner than they should.
The interest rates are what makes remortgages and secured loans so attractive with a remortgage starting at less than 2% and the other homeowner loan at present starts at about 9%
The better the equity, the lower the interest rate is the general rule of thumb, and a homeowner requiring a remortgage for example at 90% LTV will pay more than 5%, while some one with an LTV of 60% will be charged less than 2% for a tracker product.
Fixed rate remortgages cost more than a tracker, and the longer the fixed period is the higher the interest rate.
Secured loans can be paid out in half the time taken for a remortgage at over two weeks and about a month respectively.
An eight day cooling of period is needed for secured loans.
This means that the borrower must be first of all be provided with a copy of his credit agreement and eight days later the signature copy must be sent by post.
Remortgages and secured loans are versatile loans that can be used for almost anything including debt consolidation
We have just skimmed the surface and any other information need can be obtained from a secured loan or mortgage broker.