Money Does Matter

While remortgages and secured loans are similar types of home loans, they are also different in many ways

The main feature that these home loans have that relates them, is the fact that both depend on the equity that is on the home of the applicant.

Secured loans are also known as homeowner loans which makes it perfectly obvious that these loans are only available to those who own their own homes.

Equity is the difference between what a house is worth and the balance of the mortgage that is secured on it.

Until the start of 2007 secured loans were possible at 25% more than the actual value of the property and this was known as the 125% equity plan.The maximum now is 80% for employed applicants and 70% for those in employment.

Similarly the Northern Rock offered both mortgages and remortgages at up to 125% with remortgages of 100% available from most lenders.

The maximum LTV now for remortgages is 90%, while certainly better than that for secured loans is still much less lenient than before the recession.

Before the credit crisis, self certifications of earnings were taken as income proof by remortgage and secured loan lenders but that ended

For some time no lender accepted self certs for either homeowner loans or remortgages but this has altered in favour of secured loans

Both remortgages and secured loans have a vast variety of uses from going on a special holiday and they are both good methods of debt consolidation.

These secured loans for the self employed have however certain limitations as they must have a lot of equity at a maximum of 60% and the biggest available loan is 30,000. In addition, the borrower must show my means of three months bank statements that they do in fact have income deposited.

These self employed loans of this kind will be a useful alternative to those who cannot obtain a remortgage due to a lack of accounts.

Looking to find the best deal on debt consolidation loans, then visit www.championfinance.com to find the best deal on a remortgage for you.

One form of loan which have a common bond are called home loans.

The thing that the home loan group have in common is the fact that they all have something to do with property.

Among the group of home loans are mortgages, remortgages and secured loans otherwise known as homeowner loans.

In spite of the fact that mortgages, remortgages and secured loans have a lot in common they are used in different ways.

To start with mortgages what a mortgage is is the home loan used to purchase a home whether it is to buy for the very first time or to move to another property.

Most people move to a different property after a number of years and so they have to apply for a number of mortgages over a period of time.

Whatever kind of mortgage a homeowner has there is an early repayment penalty to be paid if the mortgage is paid off sooner than the period originally agreed.

However after the agreed period most homeowners decide to remortgage rather than stay with their own mortgage provider, making a remortgage the moving of a mortgage from one mortgage lender to another.

Some take out a remortgage to obtain a better rate of interest while others want to raise additional money which they can use for a number of different reasons.

Homeowner loans or secured loans are very much like remortgages but they do not replace the existing mortgage but stay as a separate entity behind the current mortgage which stays exactly as it was.

Remortgages like secured loans can be used for a huge array of purposes from purchasing a vehicle, carrying out home improvements or even paying for a holiday or a wedding.

Both remortgages and secured loans are frequently used for debt consolidation where by all high interest personal loans are rolled into the one and replaced with the low interest remortgage or secured loan

Want to find out more about secured loans, then visit Champion Finance’s site on how to choose the best remortgage for you .

categories: secured loans,homeowner loans,refinancing,debt consolidation,mortgage,remortgage,finance