What Is Needed For Remortgages And Secured Loans
If a homeowner needs to borrow, remortgages and secured loans are the best options.
There are subtle differences between these two home loans, although both are virtually identical in the fact that they can be used for almost any purpose, from funding home improvements, buying a car, paying for a holiday, a wedding, vehicle purchase, etc.
Many homeowners take out a remortgage or a securred loan for debt consolidation, which pays off all high interest credit cards, personal loans etc,. and leaves a much lower interest remortgage or secured loan repayment in their place.
Using homeowner loans or remortgages as debt consolidation loans can half, or even more than half, monthly outgoings.
Having decided that a remortgage or a secured loan is required , a homeowner often wonders how to go about it, if he has enough equity, what information he needs to provide, etc.
The first requirement is to have sufficient equity, and what this means is the difference between what a property is valued at and the mortgage secured on it.
There used to be 100% and 125% mortgages and remortgags, but now the best LTV is 90%.
Most remortgage lenders prefer to limit the LTV to 85% maximum, and the rule of thumb is,, the tighter the equity margin, the higher the interest rate is.At loan to values of 60%, remortgages are available at from 1.84% APR.
Secured loans currently have just witnessed their LTVS being increased to 85% for employed applicants and to 75% for those who are self employed. This is an increase of 5%.
It is possible to obtain a home owner loan if self employed and in business for a minimum of six months.
The interest rates for secured loans, which are also known as homeowner loans, start at from about 9% APR.
The information needed for either a remortgage a secured loan is proof of residency less then two months old, ID , bank statements, incomwe proof, etc.
Lenders also require proof of identity, shortened frequently to ID, and that means that the prospective borrower needs to provide a driving license or a passport.
If the applicants are not showing on the voters roll for the whole of the past three years, they must provide proof of residency for the missing period, and again this can be telephone bills, electricity bills or similar, sent to the address on which the remortgage or homeowner loan is to be secured.
There are some loan providers who are prepared to accept a clear copy.providing a professional person, such as a teacher or doctor, certifies that he has seen the originals.
As is apparent, there is nothing complicated about the info required when applying for remortgages and secured loans.
by: Liz Moir
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