subject: The Advantages Of Secured Loans And Remortgages. [print this page] There are always times when a person needs some additional money and that is when the decision has to take place as to the best means to achieve this.
Borrowing is an aspect of life with which most people are familiar with, as unless a person has a vast amount of money at his back, he will need borrowings of some sort or the other.
Loans is the general term given to the need to borrow money.
In general, loans fall into two fields , one of which is unsecured and the other is secured.
Unsecured loans, as their name clearly shows, are loans given without security to an individual.
Due to the fact that unsecured loans require no form of security they normally have fairly high rates of interest and an added disadvantage is that they are hard to get these days.
Apart from the fact that unsecured loans are expensive and hard to obtain, other disadvantages of these loans is caused by the fact that they have shortish repayment periods of only sixty months and maximum loan values of 15,000.
When applying for an unsecured loans the applicant normally has to prove the reason for wanting the loan.
If some one borrows on an unsecured basis to carry out improvements to their home, estimates for the work are required.
When buying other things with an unsecured loan such as a car, caravan, holiday, etc. definitive proof must be offered.
Non homeowners, requiring a loan, have no choice except unsecured loans
Homeowners on te other hand have cheaper and easier ways of borrowing.
What these two options are are remortgages and secured loans which are also called homeowner loans.
Both a remortgage and a secured loan have many uses.
Secured loan and remortgage borrowers need not produce proof of what he loan is being used for,
Unlike the short repayment period for unsecured loans, secured loans and remortgages have repayment periods of up three hundred months.
A great advantage for remortgages and secured loans is that they also make great means of debt consolidation.
by: Sandra Forrest.
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