The Difference Between Remortgages And Secured Loans

Secured loans and remortgages have a lot in common while at the same time they have different aspects to them. The main feature that these home loans have that relates them, is the fact that both depend on the equity that is on the home of the applicant. Secured loans have also another name and that is homeowner loans which states the obvious, that they are only available to property owners. What equity means is what remains when the outstanding mortgage is taken away from what the property is worth. Before the recession it was possible to obtain secured loans at 125%, but now the maximum is 70% for the self employed and 80% for others. Remortgages of up to 100% were also available while The Northern Rock advanced remortgages of 25% more than the property value. The maximum LTV for remortgages has fallen to 90% which is higher than for secured loans. Before the credit crunch it was acceptable for the self employed to declare their own net profit when applying for either a remortgage or a secured loan but that stopped There has been no self certs for some time, but now one secured loan lender is accepting self certs while this stays unavailable to remortgage borrowers These self employed loans on self certs for those who cannot produce accounts will prove very useful to those who are no longer eligible for a remortgage.Yet they should be a good way for someone who cannot obtain a remortgage to obtain the money required. Both remortgages and secured loans can be used for all the same reasons, from paying for a holiday, carrying out home improvements and they also make excellent debt consolidation loans One thing that secured loans and remortgages have in common is their multitude of uses including paying for school fees right through to debt consolidation. Learn more about secured loans Stop by Champion Finance’s site where you can find out all about remortgage for you.