Most people know the terms of secured loans and remortgages without really understanding what in fact they are. They realize that they are similar, but do not know exactly what they are, other than ways to borrow money nor do they understand what they can be used for, how to apply and how much they cost, etc. As with everything else in life, the best place to start is at the beginning, and the starting point is to explain that remortgages and secured loans are loans for whom only homeowners are eligible, and this is due to the fact that both a secured loan and a remortgage need an asset on which to be secured, and the asset that applies here is the property of the applicant. It is in fact the equity on the property that forms the collateral for a secured loan or remortgage, and this is the difference between the mortgage balance on the property and it's value. In the past it was possible to arrange remortgages and secured loans on properties with virtually no equity when 125% equity plans were in vogue, but this is no longer the case. The maximum secured loan, loan to value now is 85% for employed borrowers and normally 75% for the self employed. Matters are getting a little better, and now secured loans are available for the self employed at 80% LTV. Those in employment can obtain a homeowner loan at 90% LTV, but the maximum loan is only £15,000. As to how much you can borrow ,well the fact is that secured loans are available up to £100,000 and a remortgage can be for any amount and depends on the income of the borrower and the equity on his property up to a loan to value of 90% with some mortgage lenders and up to 85% with others As regards what these homeowner loans can be used for , the truth is that they can be used for almost anything, including paying for a wedding, a holiday, etc. Secured loans and remortgages are a great method of paying for a car. as it means that the purchaser will have cash in hand to make big savings by buying from a private individual or even buying at auction which both allow for about a third to be saved compared to tne price of buying the same vehicle in a garage. Remortgages and secured loans are also advisable methods of paying for homeimprovements with their rates of 2% and 7.9% respectively which is a fraction of the interest rate of about 25% charged by the company providing the conservatory, kitchen, bathroom, etc. They are also very useful when used for debt consolidation which rolls all credit card debts, etc. into a single cheaper payment monthly. It must by now be apparent that homeowners will hardly need any other form of credit other than remortgages and secured loans.
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