Loans are a main stay of life for many off and on in the course of their life.

There are dozens of reasons for requiring a loan.

The situation as regards loans is dependent to a great extent on whether the applicant owns his house or rents it either privately or from a local council.

For tenants unfortunately the choice is very limited to say the least, and a tenant is only eligible to apply for an unsecured loan as he has no security in the form of a property to put forward to secure the loan.

The situation for tenants has further deteriorated since the start of the credit crisis.

There was a prominent lender, namely Welcome Finance who did grant unsecured loans in addition to secured loans, but they have closed their doors.

Homeowners are in a very much stronger position and they still are able to obtain finance, although not as readily now as three years ago.

For homeowners the main choice when wanting to raise funds is between homeowner loans, otherwise called secured loans or remortgages.

Whether a homeowner is interested in secured loans or remortgages they are both virtually the same thing as both are secured what ever equity is in the property, and this means the difference between the mortgage and what the property is in fact worth.

Secured homeowner loans are a stand alone product that do not interfere with the current mortgage on the property.

Although they have nothing to do with the mortgage secured homeowner loans are registered officially as a security exactly as is the existing first charge.

On the other hand by arranging a remortgage the current mortgage is payed off and the remortgage takes its place with the extra money needed added to the previous mortgage balance.

Both remortgages and secured loans can be used for almost any purpose whether it is to fund home improvements, take an extra special holiday, pay for school or university fees, buy a car, a motor home, etc.

Remortgages have lower interest rates than secured loans while secured loans are faster to arrange.Meaning in fact that the whole thing is a matter of personal choice.

homeowner loans

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