There are many sorts of loans on the finance market and one of these is called secured loans or another name for this product is homeowner loans. The reason for the name secured loan or homeowner loan is by dint of the fact that they are secured on the equity of property, making homeowners the only people who can apply.
Secured loans are a second charge on the property, and are recorded at the Land Registry as that behind the mortgage which is the first charge and is the loan used to buy the property in the first instance.
Most homeowner loan lenders grant these loans from 10,000, with the maximum loan normally being 100,000. Link Loans however give out secured loans from only 3,000
The fact that it is possible to borrow up to such a large amount means that most things are within your grasp from home improvements, buying a boat, holidays, etc. It is even possible to buy a second or holiday home with a homeowner loan.
A common use for homeowner loans is as debt consolidation loans that unite all the outstanding debt balances into a single cheaper payment monthly.
Since the beginning of the credit crunch, secured loan interest rates were higher than they had been for some time, but now welcome changes are being seen with a 7.9% product recently seen by Link Loans and now, as of next week, Nemo, the Cardiff based lender are bringing out a new lower rate.
If a homeowner needs to borrow more than the maximum available for a secured loan, remortgages are a good option, as a remortgage has no restriction as to a maximum sum available, providing the borrower has the income and equity needed.
Remortgages have all the same uses as secured loans and with rates of interest from under 2% available, a homeowner is in a win to win situation whether he chooses a remortgage or a secured loan
Secured loans are a second charge on the property, and are recorded at the Land Registry as that behind the mortgage which is the first charge and is the loan used to buy the property in the first instance.
Most homeowner loan lenders grant these loans from 10,000, with the maximum loan normally being 100,000. Link Loans however give out secured loans from only 3,000
The fact that it is possible to borrow up to such a large amount means that most things are within your grasp from home improvements, buying a boat, holidays, etc. It is even possible to buy a second or holiday home with a homeowner loan.
A common use for homeowner loans is as debt consolidation loans that unite all the outstanding debt balances into a single cheaper payment monthly.
Since the beginning of the credit crunch, secured loan interest rates were higher than they had been for some time, but now welcome changes are being seen with a 7.9% product recently seen by Link Loans and now, as of next week, Nemo, the Cardiff based lender are bringing out a new lower rate.
If a homeowner needs to borrow more than the maximum available for a secured loan, remortgages are a good option, as a remortgage has no restriction as to a maximum sum available, providing the borrower has the income and equity needed.
Remortgages have all the same uses as secured loans and with rates of interest from under 2% available, a homeowner is in a win to win situation whether he chooses a remortgage or a secured loan
About the Author:
Learn more about secured loan Stop by Champion Finance's site where you can find out all about deals on remortgages for you.
No comments:
Post a Comment