By Fiona Sansy
One very handy family of loans that we are going to be talking about is the group being known as home loans, and there are three main loans in this group.
The home loans we are thinking about in this group are mortgages, remortgages and secured loans which are also often referred to as homeowner loans for obvious reasons.
When a person decides that they would like to move house , or to buy their first house , the first question to consider is t the way to go about getting the money to buy it.. The loan needed for this is a mortgage,
The price of property is high , and therefore most buyers do not have the ready money for the purchase, and so they must arrange a mortgage, which most people do several times off and on.
A mortgage deals usually lasts for a certain time, which can be from twelve months to as many as sixty , and at this time there would be a penalty to be paid for early settlement of the mortgage.
This means that very few homeowners pay off their mortgage provider at this tie in this period, but at the end of the mortgage deal many homeowners remortgage.
The remortgage clears the current mortgage and if extra cash is taken to consolidate credit cards, personal loans, etc, these can all be paid off, and this is s called debt consolidation.
Mortgage and remortgages have identical criteria and have the same interest rates, etc.
Mortgages and remortgages behave in identical ways as regards equity, the applicant’s earnings, etc. The third homeowner loan is secured loans and they have the same uses as remortgages, although their interest rates are higher. Secured loans do not clear the mortgage but rank the current mortgage as a second charge .However they can be used for debt consolidation, among many other matters in the same way same way as it’s cousin remortgages.
categories: secured loans,homeowner loans,remortgage,remortgages,mortgage,mortgages
Article kindly provided by UberArticles.com
Topics: Mortgages | Comments Off
MLA Style Citation:
Sansy, Fiona "The Uses For Remortgage And Secured Loans .." The Uses For Remortgage And Secured Loans .. 24 Jun. 2010. uberarticles.com. 6 Sep 2014 <http://uberarticles.com/finance/mortgages/an-explanation-of-secured-loans-mortgages-and-remortgages/>.
APA Style Citation:
Sansy, F (2010, June 24). The Uses For Remortgage And Secured Loans .. Retrieved September 6, 2014, from http://uberarticles.com/finance/mortgages/an-explanation-of-secured-loans-mortgages-and-remortgages/
Chicago Style Citation:
Sansy, Fiona "The Uses For Remortgage And Secured Loans ." uberarticles.com. http://uberarticles.com/finance/mortgages/an-explanation-of-secured-loans-mortgages-and-remortgages/
Comments are closed.
Uber Articles and its partner sites cannot be held responsible for either the content nor the originality of any articles. If you believe the article has been stolen from you without your permission, please contact us and we will remove it immediately. If you have a problem with the accuracy or otherwise of the content of an article, please contact the author, not us! Also, please remember that any opinions and ideas presented in any of the articles are those of the author and cannot be taken to represent the opinions of Uber Articles. All articles are provided for informational purposes only. None of them should be relied upon for medical, psychological, financial, legal, or other professional advice. If you need professional advice, see a professional. We cannot be held responsible for any use or misuse you make of the articles, nor can we be held responsible for any claims for earnings, cures, or other results that the article might make.