| If
a homeowner needs to borrow, remortgages and secured loans are
the best options.
There
are subtle differences between these two home loans, although
both are virtually identical in the fact that they can be
used for almost any purpose, from funding home improvements,
buying a car, paying for a holiday, a wedding, vehicle purchase,
etc.
Many homeowners
take out a remortgage or a securred loan for debt consolidation,
which pays off all high interest credit cards, personal loans
etc,. and leaves a much lower interest remortgage or secured
loan repayment in their place.
Using
homeowner loans or remortgages as debt consolidation loans
can half, or even more than half, monthly outgoings.
Having
decided that a remortgage or a secured loan is required ,
a homeowner often wonders how to go about it, if he has enough
equity, what information he needs to provide, etc.
The first
requirement is to have sufficient equity, and what this means
is the difference between what a property is valued at and
the mortgage secured on it.
There
used to be 100% and 125% mortgages and remortgags, but now
the best LTV is 90%.
Most remortgage
lenders prefer to limit the LTV to 85% maximum, and the rule
of thumb is,, the tighter the equity margin, the higher the
interest rate is.At loan to values of 60%, remortgages are
available at from 1.84% APR.
Secured
loans currently have just witnessed their LTVS being increased
to 85% for employed applicants and to 75% for those who are
self employed. This is an increase of 5%.
It is
possible to obtain a home owner loan if self employed and
in business for a minimum of six months.
The interest
rates for secured loans, which are also known as homeowner
loans, start at from about 9% APR.
The information
needed for either a remortgage a secured loan is proof of
residency less then two months old, ID , bank statements,
incomwe proof, etc.
Lenders
also require proof of identity, shortened frequently to ID,
and that means that the prospective borrower needs to provide
a driving license or a passport.
If the
applicants are not showing on the voters roll for the whole
of the past three years, they must provide proof of residency
for the missing period, and again this can be telephone bills,
electricity bills or similar, sent to the address on which
the remortgage or homeowner loan is to be secured.
There
are some loan providers who are prepared to accept a clear
copy.providing a professional person, such as a teacher or
doctor, certifies that he has seen the originals.
As is
apparent, there is nothing complicated about the info required
when applying for remortgages and secured loans.
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