Two homeowner loans that can be used for many purposes are secured loans and remortgages.
The collateral needed is the asset of a property which is normally the main or only residence of the applicant although some lenders are willingly to secure the loan on the second, holiday home or even a buy to let property owned by the prospective borrower.
The secured loan and remortgage require security these days unlike in the past when homeowners with little or no equity could borrow.
The LTV for a secured loan is 75%% for self employed people and 85% for the rest.
If a remortgage is the home loan of choice it is possible to obtain one at up to 90% LTV but this only applies to a minority of mortgage lenders with most of them offering only up to 85% LTV products
With both remortgages and secured loans the equity margin is restricted if the security is not being registered on a first residential property.
Both remortgages and secured loans can be used for all the same purposes except in one extremely major aspect which is that a secured loan is a totally stand alone loan that ranks behind the first mortgage and in no way interferes with this.
On the other hand by very dint of it's name a remortgage clears of the current mortgage.
Some homeowners only apply for a remortgage of the same sum as the original mortgage which is called a like for like.
However it is the remortgage taken out to raise additional money that we are talking about at the moment, that is a remortgage, like a secured loan that can be used for almost any reason, and with interest rates of from 1.The interest rate for secured loans is around the 9% mark and remortgages start at 1.84%.
There is a huge diversity of reasons in which these loan products can be used and it is almost anything from a needle to a haystack.
For example, many men have married the girl of their dreams thanks to a secured loan or a remortgage, and without their help the girl would have stayed a bride of their dreams and not in reality as these poor men did not have enough money to readily fund the wedding, the honeymoon and all the other trimmings
Secured loans and remortgages are also both very useful methods of buying a vehicle whether it is a car, van, motor bike, etc.
They also are handy when a homeowner wants to buy a caravan or a motorhome as with cash in hand it is possible to make a private purchase and save about one third on the price which considering the cost of the purchase is a substantial saving.
Another good reason for using a secured loan or a remortgage is for home improvements because due to their cheap interest rates compared to loans provided by the home improvement company of about 25% they constitute very cost effective means of improving a home.
Using this way of paying for home improvements also eliminates going to the bank when estimates are also required.
Another very popular use of remortgages and secured loans are for debt consolidation that rolls all huge interest credit cards and other debts into one that not only saves money but tidies up finances
These are only a few of the many uses for secured loans and remortgages and if you are in any doubt as to what you can use these loans for you should consult an expert.
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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