subject: What Is Needed When Applying For Remortgages And Secured Loans [print this page] When a homeowner decides that he either wants or needs to borrow a substantial sum of money he is faced with the decision as to which is the best method.
If a homeowner has equity in his property the most appropriate way to borrow is either by arranging a secured loan or a remortgage as both of these homeowner loans have very favourable rates of interest in addition to being very flexible as regards what they can be used for and also their repayment periods.
The interest rates for remortgages at present are from less than 2% while secured loans are available from about 9% APR making them extremely cheap methods of raising funds for a multitude of purposes.
Both a secured loan and a remortgage can be paid back over as long as a twenty five year period making them affordable to most applicants.
Therefore it is really a no brainer for homeowners to consider any other sort of borrowing when they need extra cash to think about any other method than secured loans and remortgages with their low rates, their flexibility, as regards what they can be used for and their long repayment terms.
As well as using these home loans for purchasing a large object, they can also be used as debt consolidation loans that roll all out standing debts in credit cards, personal loans, hire purchase and so on into the one much cheaper repayment each month.
Once a homeowner realizes that a remortgage or a secured lon is right for them they then must decide on the best way to arrange this and what is the criteria for these homeowner loans.
The first thing that matters is the equity on the property, and secured loans are available up to a maximum loan to value of 85% for employed appllicants and 75% for the self employed.
Loan to value for remortgages can go as high as 90% although most mortgage lenders prefer to limit it to 85%.
The information that must be provided for both these loans is identical whatever product you decide to apply for.
Employed borrowers must provide three up to date wage slips.
If the applicants are in receipt of any state benefits or pensions they must provide detailed written back up proof of this.
Mortgage and secured loan lenders also require proof of residency dated within the previous two months in the form of utility bills or similar.
The self employed, when applying for a mortgage or a remortgage, need now to produce full accounts or an accountants certificate and self certification of net profit is no longer accepted.
The self employed criteria as regards homeowner loans is a little less strict, with some loan providers accepting self certs. backed up with trade invoices or Inland Revenue correspondence.
There is one lender prepared to grant self employed loans to people trading for a minimum period of six months.
ID in the form of a passport or driving licence is a requirement when wanting a remortgage or a secured loan.
Therefore as can be seen the information required for these ecxellemt ways of borrowing for homeowners is in fact fairly basic.
by: Liz Moir
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