There are all sorts of loans both unsecured and secured , but if you are a homeowner it is wise to use your status as such to borrow at great interest rates by means of the home loan products of remortgages and secured loans.

Both secured loans and remortgages are loans that are secured on the equity on a property, and therefore only people who actually own their property can apply.

There are various matters to consider as to which is the better product at any particular time to be considered.

Homeowners are tied into a mortgage for several years after the start date of the mortgage and during these years they are required to pay an early repayment penalty if they pay off the mortgage early and this can amount to thousands of pounds.

This can cost the homeowner thousands of pounds in charges as the penalty can be from 2% to 5% of the outstanding mortgage balance. If you have a mortgage of say 300,000, the penalty would be from 6,000 to as much as 15,000. Therefore to remortgage in such circumstances would be an act of madness, and a secured loan would be the road to take.

If a great bargain of for example of a private sale motor home or similar crops up making you require the loan in a hurry the secured loan is the better choice as it takes half the time of a remortgage to arrange. A remortgage can take up to six weeks, and a secured loan is half that time.

If neither of the previous statements apply to you a remortgage could well be preferable as the interest rates for a remortgage are normally lower. At this moment in time if the homeowner has at least a 40% deposit interest rates of under 2% are currently available.

Secured loan rates now start at around the 9% mark which is good but still more expensive than the remortgage.

The remortgage and secured loan are excellent products that you can use to buy many a product that you otherwise could not readily afford.

Want to find out more about remortgages, then visit Champion Finance’s site and find the best remortgage for your needs.

This entry was posted on Friday, November 27th, 2009 at 3:13 am and is filed under Mortgage. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.