Secured loans and remortgages have a number of totally uniting features but as well as this, they have some definite differences .
The most distinct feature that these homeowner loans have in common, is the fact that they both need the equity of the applicant’s property.
Secured loans are also known by another name and that is homeowner loans which makes it clear, that they are only available to homeowners.
What equity means is the sum that is left when the outstanding mortgage balance is deducted from what the property is worth.
Up to the start of 2007 secured loans were available at 25% more than the value of the property and this was called the 125% equity plan.The maximum secured loan is now available up to 85% for employed borrowers and 75% for those who are self employed..
Remortgages of up to 100% were also available while The Northern Rock advanced remortgages of 25% more than the property value.
The maximum LTV now for remortgages is 90%, while certainly better than that for secured loans is still much less lax if not to say reckless than before the recession.
Self certifications of income were accepted for self employed people for both a remortgage and a secured loan but things are all so very different now.
Self certs were abolished some time ago, but now however there is one secured loan lender accepting self certs while they are still not available to remortgage borrowers
Due to the fact that the self employed can no longer apply for a remortgage without concrete income proof these self employed loans are a good alternative when they require extra funds.
Remortgages and secured loans can be used for identical reasons, from holidays, home improvements and they also make ideal consolidation loans
You must remember that this self employed plan has a maximum loan value of 30,000, a maximum loan to value of 60% and the borrower has to have three months bank statements so that the loan provider can be certain of his earnings.
Learn more about secured loans Stop by Champion Finance’s site where you can find out all about remortgage for you.
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Tags: Credit Debt Consolidation, Debt Consolidation, finance, homeowner loans, mortgage, refinancing, remortgage, secured loans