by Ruth Ross
Homeowners often need a loan of some kind for a number of reasons, and most know the expression secured loans and they know people who have taken out one such a loan, one of which was used to purchase a boat, and yet another secured loan was taken out by a friend to pay for a luxury holiday. In spite of knowing individuals who have taken out a secured loan many are unsure of exactly what a secured loan is..
Firstly as regards these loans is the fact that secured loans are, as it stated on the box, secured financial products which means that they need an asset on which to from the security and in this instance the asset is the property of the borrower,
Secured loans are in fact secured on the equity of a property, and unlike in the past, there are no longer any 100% or 125% equity plans available
Loan to values have become very much stricter and the maximum LTV for the self employed is 75% and for employed applicants it is 10% higher.
One secured loan lender is at present offering secured loans as (http://www.championfinance.com/credit/self-employed-loans.htm) self employed loans with no accounts needed at a tight LTV of 60%, and another requirement is that three months bank statements must be provided.
The interest rates for secured loans these days is around 9%, which, as this is considerably cheaper than the rate of interest for credit cards and most personal loans, makes them very good (http://www.championfinance.com) debt consolidation loans.
Secured loans can be paid back over a twenty five years repayment term us a factor that makes them affordable ways of paying for a large purchase.
They can also be repaid early and the penalty for so doing is generally only a month
Secured loans and remortgages can be used for the same purposes .
One occasion in particular when a homeowner would be better tp apply for a secured loans rather than a (http://www.championfinance.com) remortgage is during a tie in period with (http://www.championfinance.com/mortgages.htm) mortgages when the homeowner would incur an early repayment penalty.
No one wants to pay a penalty and particularly when we bear in mind that this penalty can be anything from 2% to 5% of the balance and would inevitablby run into thousands and no one want to pay that amount of money as after all a remortgage is supposed to save people money and not the opposite. Therefore when there is a tie in period a secured loan would therefore be preferable. - 41115
Learn more about (http://www.championfinance.com) debt consolidation
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New Unique Article!
Title: Secured Loans And Remortgages Discussed.
Author: Ruth Ross
Email: championfinance@aol.com
Keywords: secured loans,homeowner loans,refinancing,debt consolidation,mortgage,remortgage,finance,loans
Word Count: 442
Category: Finance:Debt Consolidation
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