subject: An Explanation Of Remortgages And Secured Loans [print this page] Often when a homeowner decides that he wants to borrow against the equity of his property he wonders what the best method is , the interest rates attached to the home loan and how to actually go about arranging a loan of this kind.
The loans that they are thinking about are what are known as secured loans, which are also commonly called homeowner loans, and remortgages.
Both remortgages and secured loans are in fact two types of loans that are secured on the equity of a property.
In fact it is more accurate to say that they are secured on the equity of a property.
Equity is the balance between the mortgage balance and the value of the house, and if some one has lived in his property for some time there should be a considerable sum of equity.
There are distinct differences between secured loans and remortgages, the main one being that a remortgage is a new mortgage that takes the place of an existing one. It is not possible therefore to obtain a remortgage if there is no mortgage on the property.
A remortgage must always be arranged with a different mortgage provider.
Just as a remortgage is secured on the equity of a property so too is the secured loan. Unlike remortgages secured loans are separate from the current mortgage which stays in place.
Remortgages and homeowner loans can both be used for all the same things from buying car to going on holiday, paying for school fees, etc. and they both make great debt consolidation loans.
Debt consolidation loans are the loans that pay off all out standing debts in credit cards, personal loans and so on and the debt becomes a one single much lower interest repayment that makes handling finances much easier, in addition to saving money
by: Bernard Christie.
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