Friday, 19 August 2011

Remortgages And Secured Loans

Cheapest Loans Available.

Secured loans and unsecured loans form the two major ways of borrowing.
Everyone, whether they are tenants or homeowners, can theoretically apply for an unsecured loan as they do not require any security what so ever.

In general unsecured loans have never been all that easy to come by, especially for those who only rent their property or live with their family etc.This is even more so the case in the present economic climate, when more people than usual are being declined when they make an application for any sort of unsecured borrowing.

Up until a few years ago, there were lenders such as Welcome Finance who readily lent reasonably small loans to tenants and homeowners alike, and inspite of the fact that their interest rates at that time seemed rather high at around the 40% APR mark, they now seem quite acceptable when we compare them to the pay day loans that are flourishing at the moment.

It really appears that many people are currently strapped for cash when they are prepared to take a short term pay day loan with interest rates of thousands of percent.
It is a pitty to think that so many people are so desperate for money that they are prepared to go down this route, or even worse to resort to borrow from illegal money lenders.

Unfortunately those who only rent their home have sometimes no other option when they are hard pressed financially because we as we have already said, it is more difficult than ever before to obtain an unsecured loan.

Obtaining finance for a car or any other vehicle is easier, although most people believe that a car loan is unsecured, when the truth is that it is actually secured on the car itself.
Until a certain point, the loan lender can repossess the vehicle if the borrower defaults on his payments, and this is the reason why it is not too difficult to obtain such a loan.

However these problems of borrowing only relate to home renters or to homeowners who have little or no equity in their properties, as those who own their home, with equity available, have two much better ways of raising any money that they may need, and by this we are referring to the homeowner loans of remortgages and secured loans.

Both a secured loan and remortgage require the asset of the property which means that they are much simpler to obtain than any kind of unsecured borrowing.
Not only are they easier to achieve, but their interest rates are very low with remortgages being available for less than 2%, and secured loans are from 7.9%, but these rates vary depending on such matters as heestatus of the applicant, whither he is employed or self employed, and one of the main determining factors is the equity of the property.

Due to fact that their interest rates are so low, and that they can be used for almost any reason, including debt consolidation means that homeowners are in the fortunate position of being able to raise finance whenever they wish.
Champion Finance are one of the main secured loans brokers in the UK.


Finding the Best Loan

Secured Loans Best Choice.

  The UK Secured Loans market is enjoying strong growth recently as many new lenders have entered the market providing borrowers with many competing options, even safe loans for bad credit borrowers. Among the most popular lenders are names such as Blemain, Nemo, Prestige, Jigsaw and Tiuta; they may not all be household names yet like many of the high street lenders but their influence is certainly growing.

  So, why are tenable loans so much in demand of late? There are many reasons: Firstly the tightness in the mortgage market has meant mortgage lenders are not as keen to offer finance as before. Secondly, even if they are eligible for one, many people find themselves on competitive tracker rates and don't want to remortgage and lose that deal. Finally too we note that the regulation in the Secured Loan market is lighter thereby making transactions easier. All these factors have contributed to the rise in popularity of the UK protected loans market.

What does one need to know before borrowing in this market? A key point to note is that the best secured loans are not always the cheapest secured advances. Terms vary across lenders and what may appear cheap up front could have some painful Early Repayment Charges. These could come into play if your circumstances change and want to complete the loan before its natural term. Watch out too for lender fees that could substantially change the APR on a loan, especially if it is over a shorter term. As with all things financial finding a reliable broker to advise you will likely pay you in the long term.

 One of the most popular uses for this market is providing secured loans for bad credit borrowers. If someone with a less than perfect credit record needs to borrow but is not eligible for an unsecured loan, if they have equity in their property there will likely be a secured loan available to them which will both finance their requirement and provide them with an opportunity to rebuild their credit rating.

 Very often such loans aren't the cheapest secured loans available but if the borrower maintains payments for, say, a year they can then switch to a better rate or may be eligible for a remortgage or an unsecured loan. In the long term, the best secured loan for them may well be the one with a high interest rate (albeit the only one available to them at the time).

 Choice Loans is in a privileged position of having access to ALL Secured Loans lenders in the market. If you need short term cash and either are a tenant or you don't wish to offer your house as security you could get an Unsecured Loan.

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