Posts tagged remortgage
Homeowner Loans A.K.A. Secured Loans Make Borrowing Easy.
Nov 29th
Loans come in all shapes and sizes and one loan for which most people can apply is unsecured loans. These loans as their very name makes clear do not require any security at all which makes them available to everyone in theory at least.
Being unsecured leaves the lender open to losing the money lent if the unsecured borrower defaults in the loan repayments.
As the loan lender is taking a risk by advancing unsecured loans it means that their interest rates are high.
With unsecured loans the lender often requires proof of what the loan is going to be used for.
If the person applying for an unsecured loan states that he wishes the loan to buy a car for example he will have to provide further proof that this is indeed the purpose of the loan before he receives the loan funds either in the form of a cheque or paid into their bank account
For tenants unsecured loans are the only loans available to them.
However homeowners are in a different position as they can also apply for secured loans often called homeowner loans or even secured homeowner loans.
They are called homeowner loans as they are only available to homeowners and secured loans as they are secured on the equity of a homeowners property.
As the loan is secured on the homeowners property the interest rates for these secured loans is always lower than that of the unsecured variety of loan.
In addition to secured loans coming with better rates of interest than the unsecured loan the secured loan lender does not ask for proof of what the loan is to be used for and in fact secured loans can be used for almost any purpose..
Therefore there is no need for a homeowner to go through the inconvenience of an unsecured loan when secured loans are easier to arrange.
Want to find out more about homeowner loans , then visit Champion Finance’s site on how to choose the best homeowner loan for your needs.
Secured Loans And All Their Benefits.
Nov 8th
A secured loan as the name clearly implies must be secured against some form of security that is some kind of asset. There are many kinds of secured loans such as a car loan where the asset provided as security is the vehicle itself.
Apart from the secured car loan, another version of secured loans are the ones secured on the available equity in commercial properties of all kinds such as restaurants, public houses, factory units and so on.These commercial secured loans are secured on the real estate value of the actual building etc. and the profit produced by the company is not relevant as regards the security.
There can be very ropey commercial properties, particularly in the licensed trade which produce high turnovers and subsequently high profits, working out of none too salubrious public houses in run down back streets in a number of cities in the UK.The property value can be half or less that of the profit the pub produces. For example profits of 150,000 can be made from a pub whose property value is only 50,000 or so.
The most popular and common type of secured loan is the residential secured loan otherwise known as the secured homeowner loan. Obviously you have to actually own your own property to apply for a secured loan. Secured loans are an excellent way for a homeowner to raise funds for almost any purpose.
They have a very attractive interest rate starting at the moment at just over 8% APR for homeowners with a good credit rating. Even for those with far from perfect credit ratings bad credit secured loans are still available, but the interest rate is higher.
You can buy just about anything with a secured loan. As such if you want to buy caravan, car,motorbike or motor home, you can use a secured loan for this purpose.
If a homeowner is considering carrying out home improvements of any kind whether it is a kitchen,a conservatory, a porch or a patio using a secured loan for this purpose provides you with available money to pay cash to get the best deal. Nothing makes a tradesman lower his charges more quickly than the mention of cash in hand.
Secured loans have very flexible repayment periods of 5 to 25 years, and as such almost any homeowner can afford them. Secured loans can be paid off early and the only charge early repayment incurs is one month’s interest which is rather different from the heavy charges that you must pay if clearing off a remortgage early.
Is it any wonder with all this flexibility that the secured loan is so popular with homeowners?
If you are not certain about the best way to apply for a secured loan the best advice is to go online and seek the services of a secured loan broker who can provide you with any information you require and give you a free no obligation quotation.
You need to type in the appropriate keywords to find the secured loan brokers websites. These are keywords like secured loans, homeowner loans or secured loan broker.You can fill an application in online or phone. Everything can be completed by phone and mail or if face to face contact with the secured loan broker is your preference he will visit you at home.
They can do absolutely everything for you from start to finish from the filling in of your application for you to check and sign.
The secured loan broker provides you with a copy of your credit agreement after which you legally must be given an eight day consideration period. At the end of this time you will receive your agreement for signature. The agreement must be witnessed by an independent person, and once again this is when the secured loan broker can come in handy, as he will normally be prepared to act as witness if you do not want to involve a friend or neighbour in this. You cannot have a relative acting as witness.
Learn more about secured loans by visiting Champion Finance where you can also obtain the very best rates for whole of market mortgages and remortgages.
Some Facts About Homeowner Loans / Secured Loans.
Nov 7th
Homeowner loans otherwise known as secured loans are of course only available to homeowners.
Homeowners are the only people who are eligible for these homeowner loans as they require to be secured against an asset which in this case is a property. What equity is is the differerence between what a house is worth and the mortgage secured on it. To give an example of what equity is that if a property is worth 290,000, and the mortgage is 100,00, the equity is 190,000.
Before the credit crunch secured homeowner loan lenders granted homeowner loans up to 90% LTV , 95% LTV and 100% LTV, and so based on the previous example loans of up to 100,000 were available but also depended on an applicant’s income and status.
Some homeowner loan lenders even advanced secured loans at 125% LTV, meaning that secured loans were available at up to 25% more than the value of the property. However most lenders limited the maximum loan on this plan to a maximum of 60,000.
These loan to values have now gone and the maximum LTV is now 80% if the homeowner is in employment and 10% is deducted if the homeowner loan borrower is self employed.
Before the credit crunch,providing of course there was sufficient equity,secured loans were available up to a maximum of 250,000, whereas now some secured loan lenders are only prepared to grant up to a maximum loan value of 50,000 while other homeowner loan lenders grant secured loans up to 100,000
Homeowner loans can be used for almost any purpose such as to buy a car, motorhome, boat etc.In fact homeowner loans are a very good way to fund such a purchase as these loans enable you to buy a vehicle from a private individual or at an auction, and this can save you a lot of money. If you want to buy a car for example from a dealership and arrange a loan from the dealer to buy a car you will pay more for the vehicle than you would if you bought it in a private sale. Also if you buy from a dealership you will require a substantial deposit of up to 30%, and if you do not have a car to trade in 30% can be a fair amount of money to have to hand. A secured homeowner loan will fund the purchase without the need for a deposit.
A homeowner loan is an excellent way to arrange debt consolidation which combines all your outgoings on credit cards, personal loans, etc. saving you a fortune and making your financial life easier to manage.
By taking out a homeowner loan you can even use it to buy a holiday home whether your preference is the UK, Europe or even further afield.
These are only a few facts about homeowner loans to hopefully wet your appetite for this excellent low interest secured loan product.
Looking to find the best deal on secured loans, then visit www.championfinance.com to find the best advice on homeowner loans for you.
Loans Uk Can Buy Just About Everything.
Nov 3rd
When we are talking about loans UK we are thinking solely about a form of loan only available in The United Kingdom.
There are all kinds of loans UK, and some of these are car loans UK, boat loans UK, all types of unsecured loans UK, and lastly there is the secured variety of loans UK, commercial or business loans UK, and so on and so forth.
Most people regard loans UK obtained to purchase such goods as cars to be unsecured loans when in fact the car itself is the security offered in this instance.
Similarly if you obtain a loan UK to fund the purchase of a boat or a van it works in exactly the same way as that arranged to buy the motor home and is therefore also a secured loan UK.
Bearing in mind that these vehicle loans are secured loans UK, it is wise to work out that the repayments are well affordable to you as you can lose the car, van, etc. by it being repossessed if you default on payment.
As business loans UK are secured loans it must be taken into account that the loan UK is secured on the property value and not on the recent set of accounts.
There are unsecured loans UK which are in theory available to tenants as well as homeowners. However it has always been much more difficult for a tenant to obtain a loan UK compared to a homeowner, and since the credit crunch the situation of the non homeowner has become worse.
Another form of loans UK is the secured homeowner loan for which the asset of a property must be provided , meaning that only homeowners are eligible to apply.
These are great loans as these secured loans UK come with good interest rates and can be used for any legal purpose.
Want to find out more about loans UKthen visit Champion Finance’s site, and find the best loan UK for your needs.
categories: loan,homeowner loans,secured loans,debt consolidation loans,debt loans,remortgage,mortgage,real estate
What You Want to Ask Yourself Before You Remortgage
Jan 25th
Knowing whether a remortgage is the right move for you can be a difficult thing to determine. Sometimes, remortgaging is not going to be the best move, while other times it is going to be the only thing that saves your house during a tough economic patch. Answer these 10 questions honestly to find out whether remortgaging is the right move for you now.
1. How does my credit look? Knowing whether or not your credit is good is going to tell you a lot about your future interest rate if you do decide to remortgage. When your credit has seen better days, you may want to work on that before working on remortgaging.
2. What is your current rate of interest on your mortgage? If you’re only going to save a half a percent or even a percent, you might want to consider holding off on remortgaging. You want to make it worth your while, and you also want to make sure you get the best deal possible. By holding off a bit you can see if mortgage rates go down even further.
3. What’s the interest rate now? Before taking the plunge and remortgaging, you are going to want to see exactly how much money you are going to be able to save every month.
4. What are the fees associated with remortgaging? Every company is going to have different fees for remortgaging, and you want to choose a company with the lowest fees. However, sometimes the fees can be hidden so make sure to read the contract thoroughly.
5. How much time do you have left on your current mortgage? If you only have a couple of years left on your current mortgage, it might not be so wise to remortgage your house. You have to think about the benefit of a new interest rate and the benefit of getting your house paid off quickly. Remortgaging is usually not the quickest way to get your house paid off, even if it will save you a bit of money.
6. Is a move in your future? If you plan on moving any time in the distant future, a remortgage is probably not the wisest of moves. Keep your current mortgage and get a better deal when you buy your next house.
7. Is your family life stable? Again, if your family life is going to change either by divorce or marriage in the next couple of years, you might want to hold of getting a new mortgage. Remortgaging costs a lot of money and takes a lot of paperwork. You don’t want to do it more often than you have to.
8. Have you been thinking about remortgaging for very long? A lot of people see commercials on television and think, “Oh remortgaging is for me,” not realizing how much work it actually is.
9. Do you have the time to remortgage? Remortgaging is going to be a major hassle, and it is going to take a lot of time. If you don’t have the time right now to remortgage, consider waiting until you do have the time so it doesn’t stress you out to much.
10. Are banks enthusiastic? If you are still unsure, go to a couple of banks and see if they are enthusiastic about all of the benefits of remortgaging for you. You will usually be able to tell whether or not remortgaging is for you and you are under no obligation to go through with it if it isn’t.
Remortgaging your house is not a simple thing, and knowing when you should and shouldn’t do it is going to be tricky. These ten questions can help you decide whether or not you need to remortgage.
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