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There are all sorts of loans both unsecured and secured , but if you are a homeowner it is wise to use your status as such to borrow at great interest rates by means of the home loan products of remortgages and secured loans.

Both remortgages and secured loans are secured kinds of loans and must be secured on property, and as such only homeowners can apply. These two loans are the same in that they can be used for almost any purpose providing that it is legal.

Which is preferable depends on several circumstances, and there are occasions depending on personal circumstances when one is preferable to the other.

Secured loans should be the loan of choice for homeowners who are in the first few years of a tie in period with their current mortgage lender. During the tie in period there is an early repayment penalty if the mortgage is repaid with a remortgage.

This can be a considerable sum of money of between 2% to 5% of the outstanding mortgage balance. Therefore if this is the case a secured loan is better, as it is a totally stand alone product that will not interfere with the current mortgage.

If the additional finance is required in a hurry, yet again the secured loan would be more suitable, as the secured loan can pay out in under three weeks with remortgages taking four weeks or very commonly six weeks to pay out.

Remortgages are cheaper than a secured loan, and therefore preferable if speed of pay out is not important to you. The interest rates for secured loans start at about 9% while remortgages start at 1.98% which is the lowest in history.

Secured loan rates now start at around the 9% mark which is good but still more expensive than the remortgage.

As is obvious there are pros and cons with both remortgages and secured loans, and personal circumstances always dictate which is the better choice.

remortgages

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