Am I Better To Apply For A Remortgage Or A Secured Loan?
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.
Which is preferable depends on several circumstances, and there are occasions depending on personal circumstances when one is preferable to the other.
Secured loans can be the route to go down if a homeowner is tied in with their mortgage. When someone takes out a mortgage they are tied to the particular mortgage product for a specified number of years and if they remortgage during that period there is an early repayment penalty to be paid.
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 the additional finance is required in a hurry, yet again the secured loan would be more suitable, as the secured loan can pay out in under three weeks with remortgages taking four weeks or very commonly six weeks to pay out.
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.
As is obvious there are pros and cons with both remortgages and secured loans, and personal circumstances always dictate which is the better choice.
Looking to find the best deal on remortgages, then visit www.championfinance.com to find the best advice on remortgages for you.
