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The interest rates of unsecured loans are at one of their most expensive ever with rates considerably higher than in 2001 which may come as a surprise to many as the Bank of England Base Lending Rate is at an historically low rate .

Nine years ago the Base Lending Rate was more than 5% higher than the 0.05% rate of now.

Unsecured loans are therefore at their highest rate in spite of the low base rate now compared to the first few years of this decade.

It is also more difficult than ever to get an unsecured loan in addition to their rates being higher than before, but unsecured loans at anything like a low rate of interest have always really only been available to those with a stellar credit rating.

Having no form of security, when a person wants an unsecured loan for what ever purpose, he must produce proof as to the reason for the loan, and it is not enough to just write the purpose on the application form.

For a homeowner there is no need to worry about interest rates of unsecured loans and their usage as a homeowner has what is often a better option and that is a secured loan otherwise called a homeowner loan.

The name is self explanatory as secured loans are secured against an asset which is the equity on a property and only those who own their homes can apply.

As these are secured loans the interest rates are always good and also as these homeowner loans are secured loans the underwriting criteria is not as strict.

Unlike for the unsecured loan when applying for a secured homeowner loan stating the purpose of the loan on the application will suffice, and no additional proof will be needed.

Secured loans are also available to those with bad credit at a tight equity margin and a more expensive interest rate meaning that homeowner loans are sometimes available to those who would not for one second be considered for an unsecured loan.

An alternative to a secured loan for a homeowner who wants a loan is a remortgage which has a multitude of uses, making secured loans and remortgages the best loans for homeowners.

Looking to find the best deal on homeowner loan then visit www.championfinance.com to find the remortgage for you.

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