Make Use Of A Remortgage Or Secured Loan For Debt Consolidation.

Most homeowners have obviously heard of the words, secured loans, and many more know the word, remortgages. However, in spite of this, there are many people who are not sure of the differences and similarities between these two home loans, what they can be used for, if they have high interest rates or not, how to go about arranging them, and what information they would need to provide if and when applying.

The first thing to explain is that the main similarity between remortgages and secured loans is that they are only available to homeowners as they both require the collateral of a property on which to be secured.

The equity available on the property is what provides the security, and equity is the difference between the value of the property and the mortgage.

Secured loans at present normally have a maximum value of £100,000, although more may be offered at the discretion of the lender.

The maximum secured loan for self employed these days is in the region of £70,000.

For remortgages there is no limit providing the equity aand the borrower's earnings are sufficient, which means that in theory at least, remortgages of millions of pounds can be granted.

As regards the uses for remortgages and secured loans, well they can be used for almost any reason at all

They are for example both very good ways of purchasing any sort of vehicle whether your preference is a car, a motor bike or a boat, and they also eliminate the need for a deposit as they can fund 100% of the purchase price. If getting a loan from the dealership a deposit of about 30% is needed.

Secured loans and remortgages can pay for home improvements, and often you can receive a discount when paying by cash enabling you do do more improvements for your money

They can fund weddings, holidays, etc. etc.

Debt consolidation that rolls all debts in credit cars, loans, etc. into the one payment each month instead of many is easily carried out by these two homeowner loans

These loans are not expensive with secured loans in the market from only 9% and remortgages start from less than 2%

The information needed when applying is not complicated with identification for all applicants required, in addition to proof of residency such as bank statements, utitily bills, etc.. The employed must provide three months wage slips, and the self employed require accounts or an accountant's certificate for remortgages at least.

There is a secured lender willing to advance secured loans on a self certification of income but three months bank statements must be provided to show that sufficient money is being deposited in the account ,

Therefore as can be seen, secured loan and remortgages can be used for most things in addition to being cheap and can be easy to apply for.

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