subject: Details About Secured Loans, Mortgages And Remortgages. [print this page] There are different kinds of loans but three loans that are closely related to each other are home loans
The home loans in this group are mortgages, remortgages and secured loans which are also often called homeowner loans for obvious reasons.
When a person decides that he wants to buy a property , whether he is a first time buyer or otherwise , the next decision is how to fund the purchase and what loan is best needed to fund it , and this is naturally a mortgage.
Very few people have the financial means to pay cash, and therefore most people will have a few mortgages. Property is expensive, at an average price of about 170,000,and as such very few people can pay outright.
A mortgage deals usually stays in place for a certain set time, which can be from one to five years, during which time there would be a penalty to be paid for early settlement.
A remortgage is the moving from a current mortgage lender to a new one, sometimes for the same amount and on other occasions to raise additional funds.
Remortgages can pay off more than the current mortgage, and also when extra cash is released, can be used for consolidation loans that clear all costly debt in credit cards, etc.
There is nothing difference between mortgages and remortgages regarding criteria , income requirements, equity margins, etc.
The next home loan of secured loans have different interest rates that are more costly than mortgage rates and remortgage rates but they have the they can be used for the exact same purposes as remortgages can. One of these purposes is debt consolidation.
by: Ashleigh Victory
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