Remortgages, Secured Loans / Homeowner Loans As An Alternative To Unsecured Loans.
It has been discovered that the interest rates for unsecured loans are higher than at almost any time in the past and at their highest rate for the past nine years which all seems rather strange when the Bank of England Base lending Rate still holds at the lowest rate ever at 0.05%
In 2001 the base rate was at a high of 6% and yet unsecured loans were several APR points less than now.
Now with the base rate at only half of one percent it seems strange that rates for unsecured loans are at their most expensive for nine years.
As well as the interest rates being high, it is also more difficult now than in the past to obtain an unsecured loan although it is a fact that unsecured loans were always only available to individuals with good credit ratings.
As the unsecured loan lender has not got complete confidence that the borrower will definately repay the loan he always requires 100% proof of why the borrower wants the loan.
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.
This slacker underwriting for example means that no further proof of the purpose for the loan beyond writing this on the application form will be asked for.
Bad credit secured loans are even available as secured loans to homeowners with poor credit ratings although equity is tightened and interest rates are higher, but at least they are still available unlike unsecured loans.
A remortgage can be used to raise funds in the same way as a secured loan making a secured loan or a remortgage a great way for a homeowner to borrow.
Want to find out more about remortgages, then visit Champion Finance’s site to choose the best remortgage for you.
