Why Choose A Secured Loan Over A Remortgage?
A remortgage is not always an appropriate recommendation,
as you may want to keep further borrowing secured on the
property separate from the main mortgage account.
There might be a number of good reasons. For example, there
could be a large redemption penalty when remortgaging, or
you may have secured a fixed rate in the past that is still
highly competitive compared to current interest rates.
By using a secured loan, the redemption penalties are
avoided and the current fixed rate will be protected, as
the original first mortgage will remain in place.
If you want to consolidate debt then a mortgage can work
fine. However, the majority of people are likely to want to
repay earlier than their existing mortgage term. By using a
secured loan you can select a realistic timescale to repay
the loan, and the original mortgage can stay in place for the
selected term.
Many people’s circumstances change after arranging a mortgage.
If you no longer fit normal mortgage income multiples, or
have had some credit problems since taking your mortgage,
you might have to pay a high price for the new mortgage,
whereas a secured loan can mean receiving the funds you need
without losing the prime rate he has on your existing mortgage.
Secured loans can be processed from initial enquiry to
completion a lot quicker than a traditional first charge
mortgage. Depending on the loan amount, the case could be
completed and paid out iine less than a week. This can be
advantageous if you have to raise funds quickly.
Secured loans can be used for many different purposes.
Typically, if the purpose is legal then the loan can be
processed. Many first charge lenders can be difficult when
it comes to the purpose of refinancing.
When you have made the decison to take on a secured loan,
you will need to search and comapre all the available
offers on the market to the find the best deal that suits
your unique requirements. Interest rates and repayment
periods will differ from lender to lender as well as the
borrowing levels and terms of the loan regarding early
redemption penalties.
It is wise to choose a broker who has the ability to search
the whole market for the best deal and not one who is tied
to a narrow group of lenders. Also there will be limitations
to the options available depending upon your credit history
so it is advisable to shop around so that you find the
optimum secured loan for your needs
secured loans
remortgages
Turbo Tagger
November 16th, 2007 - Posted in Secured Loans | |
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