Remortgages and secured loans are both home loans that require some form of security.
The necessary asset is the security of a property
There is not only one sort of secured loan or remortgage but several including both private and business.
Loans for cars, motor homes, etc. are actually secured loans and the vehicle itself i forms the security for the loan.
If serious defaults in payment occur the lender can repossess the vehicle
Even home improvement loans are secured against the goods supplied whether it is a kitchen, a new bathroom, etc.
As these homeowner loans are also secured loans it means that a lender could repossess the new bathroom, etc. if the borrower falls badly behind with his repayments. In fact this will not happen very often as there is not much value in a second hand bathroom suite for example.
Another form of secured loans are commercial ones that need to be secured on business property. These can raise extra money to improve the business,
When most people think about secured loans they mainly are thinking about the residential variety.
Remortgages are very similar to secured loans as regards the residential sort, and they also are secured against the equity on a home.
Remortgages and secured loans require that the property has sufficient equity and what equity in fact is is the figure that remains when the mortgage balance is deducted from what the house or apartment is worth.
This means that on a property of 160,000 with a mortgage of 100,000, the equity would would be 60,000. But on a property worth 160,000 and a mortgage of 160,000 there would be no availability of secured loans or remortgages.
The necessary asset is the security of a property
There is not only one sort of secured loan or remortgage but several including both private and business.
Loans for cars, motor homes, etc. are actually secured loans and the vehicle itself i forms the security for the loan.
If serious defaults in payment occur the lender can repossess the vehicle
Even home improvement loans are secured against the goods supplied whether it is a kitchen, a new bathroom, etc.
As these homeowner loans are also secured loans it means that a lender could repossess the new bathroom, etc. if the borrower falls badly behind with his repayments. In fact this will not happen very often as there is not much value in a second hand bathroom suite for example.
Another form of secured loans are commercial ones that need to be secured on business property. These can raise extra money to improve the business,
When most people think about secured loans they mainly are thinking about the residential variety.
Remortgages are very similar to secured loans as regards the residential sort, and they also are secured against the equity on a home.
Remortgages and secured loans require that the property has sufficient equity and what equity in fact is is the figure that remains when the mortgage balance is deducted from what the house or apartment is worth.
This means that on a property of 160,000 with a mortgage of 100,000, the equity would would be 60,000. But on a property worth 160,000 and a mortgage of 160,000 there would be no availability of secured loans or remortgages.
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