Monday, 14 March 2011

Some Details About Rates For Secured Loans, Mortgages And Remortgages

By Tom Mellor


There are loans that come in all forms and these are secured loans, mortgages and remortgages and although they are all home loans, they are all different in a number of different aspects.

There are different different interest for these three home loans.

Secured loans, mortgages and remortgages have a particular thing that they all have in common and that is the fact that they are all secured variety of loans that need to be secured on the equity of a property.

Mortgages are the home loan required to buy a property and this is the case whether the applicant is buying a first or sub sequent property.

When a mortgage begins, the applicant agrees that he will stay with that mortgage provider for a certain time and if he pays of his mortgage during that time he will require to pay a hefty early redemption charge

At the end of this time, many homeowners decide to remortgage, and what a remortgage is is taking out a mortgage with a new provider at a better interest rate.

As well as taking out a remortgage for a lower interest rate, many homeowners take out a remortgage to raise extra money with which they can use for most things as well and often remortgages form consolidation loans.

Interest rates for a mortgage are identical to rates for remortgage, but there are many different rates which apply, for example, whether the borrower wants a fixed rate mortgage or a variable one. At the moment fixed rates begin at less than 3% with variables starting at less than 2%.

The interest rates for these mortgages are different with tracker mortgages starting at under 2% and fixed rates from less than 3% In fact Godiva Mortgages has just introduced an excellent new rate on a fixed basis at 2.45%

Additional matters that alter interest rates are such aspect as the available equity, how many years the remortgage or mortgage is fixed for, etc.

Secured loans have different interest rates and the reason is very much the same as for mortgages and they vary from one borrower to the other with fixed rates also available for homeowner loans.

The fact that there are so many variations make it imperative to obtain a quotation of the monthly repayment for remortgages, mortgages and homeowner loans , and making the wrong choice could be a costly mistake.




About the Author:



No comments: