Remortgages And Secured Loans Are The Only Loans Needed By Homeowners.

In general, when somebody wants to borrow, he has a specific purpose in mind.

For example when a person decides that he needs a new car, he will normally need a loan of some sort, and as most people change cars every two years or so, most people will have to borrow many times in life. The car can be paid for by several means such as a car loan, a lease purchase, a lease hire, etc. The dealer selling the car can arrange the finance for the purchase.

The trouble with a loan arranged by the garage is that a deposit of a third of the retail price is required, and if there is no trade in vehicle, or if it is not of sufficient value, the buyer will have to pay thousands of pounds out of his own pocket.

Although lease purchases can seem a reasonable means of obtaining a new car, as the deposit needed is usually three months payments, but at the end of the three years lease there is a large final payment that can amount to many thousands of pounds.. If the owner wants to keep the car, he will need to have the final payment money ar his disposal or arrange a loan which will have a pretty high interest rate as lenders charge more for a second hand vehicles. People now a days like to keep their properties in a good state of repair, and like to have a nicely furnished home to relax in.

Home improvements can cost a lot, with the basic smallest kitchen costing at least seven thousand pounds with a luxurious bigger version costing the sky is the limit.

People always want the best for their homes both inside and out. etc.

Once again loans may be available from the bank, but they ask for proof of the purpose of the loan as well as requiring sight of several estimates which can prove a nuismnce to the would be borrower. Home improvements can be funded by a loan arranged through the company providing the improvements but their rates are high at about 25%.

Much better methods of paying for all the above, as well as many other reasons, are remortgages and secured loans which are loans for which only homeowners are eligible as they need the asset of a residential property. The asset can be a buy to let property as well as the main home. Using a remortgage or a secured loan when borrowing is needed, eliminates the need for a deposit when buying a car or any other vehicle, or the estimates and high interest rates that apply when doing home improvements.

At the moment, secured loans have interest rates from 9% and a remortgage deals can cost as little as 2%.

This all goes to show, that homeowners should always make these homeowner loans their first option when they want to borrow.

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