The two home loan products of secured loans, otherwise called homeowner loans, and remortgages are two kinds of loans that need to be secured.
Indeed the security required is the bricks and mortar of property of some sort.
Remortgages and secured loans come in all shapes and forms that include both commercial and residential.
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
Home improvement loans are also secured products that are secured against the improvements supplied whether it is a conservatory, a new bathroom, and so on.
As these secured loans are also secured ones it means that a lender could repossess the new bathroom, etc. if the borrower begins to struggle to meet the repayments and misses some.. In fact this will be far from common as there is not much worth in a second hand bathroom suite for example.
There are also commercial secured loans that can be secured against business premises, and these can be used to invest in the company and increase its profitability.They can also be used to refurnish or refurbish the business premises, and as such add to the value of the building.
If people think about secured loans they however are mainly thinking about the residential sort..
Remortgages are also secured products that require, just as secured loans do, to be secured against the equity in a property.
Remortgages and secured loans need the property to have sufficient equity and what equity in fact is is the figure that remains when the mortgage balance is deducted from what the house or whatever is worth.
If a home is worth 320,000 and the outstanding mortgage is 120,000 the available equity is 200,000. However if the property is worth 320,000 and the mortgage outstanding is identical there is no equity at all and a secured loan or remortgage would be possible as there is no equity.
Learn more about secured loans. Stop by Champion Finance’s site where you can find out all about the best deal in a remortgage for you.