Homeowner Loans, Remortgages And Refinancing

Homeowner Loans, Remortgages And Refinancing

Most people know the terms, homeowner loans, remortgages and refinancing, although many people do not fully understand the difference between these three home loan products.
All three are forms of secured loans , and as such are only available to homeowners.A homeowner loan is in fact quite simply, as the name suggests, a secured loan secured against the equity in a property and this homeowner loan can be used for almost any purpose.At present these secured loans have an interest rate starting at about 9% LTV which is very good although the rate is a little higher now than it was prior to the recession.

homeowner loans can be used for homeimprovements, as debt consolidation loans , etc. etc.

remortgages can be used for all the exact same purposes as homeowner loans that is for holidays, weddings, homeimprovements, debt consolidation, etc. etc.

The main difference is that with mortgage, and add the additional sum of money that you want for whatever reason and have only one home loan,to pay back every month. As such with a remortgage you will be with a different mortgage lender and with a homeowner you remain with the very same mortgage lender.

Refinancing is the restructuring of your finances which in reality can be done by means of either a homeowner loan or a remortgage and whichever you chose is to a great extent a matter of personal circumstances.

A remortgages will normally have a lower rate of interest than a homeowner loan, staring at under 2% at present for homeowners with at least a 40% deposit.

On the other hand a homeowner loan can be arranged from start to finish in less than three weeks, whereas a remortgage can take double this time.

A good piece of advise is that with such an important decision and with such large sums of money involved it is best to speak to an expert IFA or independent specialist broker who can explain the benefits, and pros and cons of these three home loans from which you can reach an informed choice.