There are several means that enables people to obtain extra cash and two such methods are by a remortgage or secured loan, and although they have aspects in common, they also have a number of differences..
The main similarity between remortgages and a secured loans is that they are both homeowner loans that must be related strongly to property
Remortgages and secured loans are both methods of raising extra money by borrowing and the sum that can be borrowed is dependent on how much equity there is.
What equity means is the sum that is left when the mortgage balance is taken away from the property value, and that is the equity the applicant has in his property.
Therefore if a home has a value of 340,000, and a mortgage of 200,000 secured on it, the available equity is 140,000
Before the credit crunch it was possible to obtain a remortgage of 100% of the property value and the Northern Rock even advanced 125% mortgages and remortgages.
These days equity has been very much restricted, and there are not many mortgage providers prepared to lend at 90% any more, and the lenders who do make the interest rates expensive at often between 6% to 7% APR.
At 90% LTv these rates are very costly, when we consider that there are rates of less than 2% for both a mortgage or a remortgage if the applicant has a deposit of 30% or sometimes 40%.
Secured loans which like their close relative the remortgage depend on property equity have very much stricter equity margins now than they did brfore.
The equity is a maximum these days of 70% for the self employed and 80% for self employed.
These self employed loans are very useful to the self employed who have struggled for the past two years to obtain a loan of any kind and who require full accounts for a remortgage.
These self employed loans are wonderful help to those who have found it almost impossible to get any finance at all since the credit crunch.
In spite of the few changes to secured loans and remortgages, one thing tht has remained constant is the fact that they can still both be used for a multitude of reasons, including debt consolidation.
Looking to find the best deal on secued loans, then visit www.championfinance.com to find the best self employed loans for you.