Tenants are very limited when they need to borrow money.
Other lenders willing to lend to tenants are companies such as Provident whose interest rates are high and maximum loan value is very low.
If a tenant has an excellent credit rating, has been in the same employment for a number of years and as has a good long estabished relationship with his own bank, he may be able to obtain a loan from his bank.
Homeowners however have a major advantage to tenants when they need to obtain a loan, as they are eligible to apply for the homeownrs loans of remortgages and secured loans which both require to be secured on the asset of their owner occupied property.
Both remortgages and secured loans are in reality all prupose loans that eliminate the need for the property owning public from the need to apply for any other means of borrowing money
Obviously if a homeowner wants to buy a caravan, car or any any other vehicle he can obtain finance from the supplying dealer, but buying in this way demands the requirement of at least a 30% deposit. If he does not have a trade in vehicle or the value of this is insufficient, he must fund the deposit with his own money.
Taking out a secured loan or remortgage to purchase a car, especially if it is an expensive one such as a Mercedes or BMW can be a wise move as the secured loan or remortgage can fund the whole of the purchase.
At the end of the day buying this type of car in this way can be very cost effective, as these cars can go for hundreds of thousands of miles compared to run of the mill cars which are well past their best by seventy thousand miles.
Another common reason for a homeowner to make use of a secured loan or remortgage is to carry out home improvements, as the former has interest rates commencing at 7.9% and the latter from under 2% which makes them a much better alternative to the loan the can be granted by the home improvement company with a rate in the region of 25%.
Another use for secured loans and remortgages is as debt consolidation loans that consolidate all credit cards and personal loan debts into a single much lower monthly repayment.
The truth of the matter is that if a homeowner has equity in his property, he needs no other loan but a secured loan or a remortgage.
Author Resource:
Champion Finance are one of the main secured loans brokers in the UK, and have been arranging homeowner loans since 1985. They also arrange remortgages and mortgages from the entire mortgage market. Every debt solution is also available to help those in debt to become debt free.
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