An Explanation of Homeowner Loans and Remortgages

There are two main types of loans and these are secured loans and unsecured loans. When thinking about unsecured loans these are available to both homeowners and tenants alike. Homeowners are those who actually own the property in which they live and this is the case whether they own their home outright or whether they have a mortgage secured on the house.

Tenants are those who only rent their home either from a local authority or a private individual. Unsecured loans tend to be more expensive than secured loans, as there is absolutely no form of security, the loan lender is not certain that he will be fully repaid. Secured loans on the other hand are more likely to be fully repaid as they are set against an asset, and in the case of homeowner secured loans the asset required is the property. These loans are called either homeowner loans or secured loans for obvious reasons which are because they are only granted to homeowners and they are secured on property.

As these homeowner loans are such a low interest flexible way to borrow it would be foolish for those who own their property to obtain any other kind of loan, as not only do they have low rates of interest but they are very flexible financial products in they can be taken out over a five year repayment period right up to a twenty five year period making them affordable to most people.

One of the main advantages of homeowner loans is that they can be used for a vast variety of purposes including buying a vehicle of any kind whether it is a car, a boat, a motor bike, a motor homes etc. Home owner loans are also a great way of funding home improvements from a new bathroom to a new kitchen right through to a garden room, home extension, etc.

A very popular purpose of homeowner loans is to arrange debt consolidation Debt consolidation involves the rolling of all outgoings in credit cards, personal loans, etc. into the one much lower monthly payment not only saving a great deal of money each month but also making finances more easy to manage. Hundreds of pounds or more can be saved every month by homeowner loans.

Remortgages can be used for all the same purposes as homeowner loans, and remortgages are also available to homeowners as they are secured on property, and what remortgages are is the replacing of a current mortgage to a new mortgage provider usually to either simply obtain a better rate of interest or to raise additional funds for all the same purposes as secured loans.

At present remortgages have interest rates starting at only 1.84% and homeowner loans currently start at about 9% and compared to the extremely high interest rates charges by credit card companies it goes without saying that both remortgages and secured loans make excellent monetary sense when used for debt consolidation.