A remortgage and a secured loan are home loans which are available to people who own their property s and are not available to tenants as these loans both need to be secured on some kind of collateral and in this case the collateral is the equity available in the property.
The fact that these loans secured it means that the interest rate for a secured loan or remortgage is as a rule lower than the interest rate for unsecured loans.. Why this is so is due to the fact the lender feels that he is much safer and secure that the borrower will repay the loan
Unsecured loans normally have much higher rates of interest than do secured loans and remortgages. Whenever a remortgage or secured loan applicant defaults seriously in his payments, and is not willing to sort out out things with the loan provider the lender can repossess the property. When loans have no security, this cannot happen, and if the borrower is a non homeowner, the only thing that the loan provider can do is take out a default or a CCJ against the borrower who has defaulted on the loan.
On the other hand if the person defaulting is a homeowner the lender can register an inhibition on the offenders property at the Land Registry. An inhibition is very similar to a CCJ except that it is secured .
The lack of security for unsecured loans is the thing that makes the interest rates of these loans high , and there is no need for homeowners to apply for these loans when remortgages and secured loans can be applied for and their interest rates are so very low. It is a wise move to use your status as a property owner to borrow at the lowest rates available.
The interest rates for remortgages start from 1.84% for a tracker remortgage or mortgage if the borrower has a maximum LTV of 60%, and this rate is the lowest rate that has ever existed.
Homeowner loans are most certainly the only way that property owners should avail themselves of.. Once the remortgage or secured loan are in place you will thank your lucky stars that you made an application for one of these home loans.
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