The two home loan products of secured loans, otherwise called homeowner loans, and remortgages are two kinds of loans that need to be secured.

The required security is the collateral available in a property

There are all sorts of secured loans and remortgages 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 loans are of the secured variety, the loan lender can reposes whatever goods the secured loan was used for, whether it is a kitchen, garden room, etc. However the removal of these home improvements would result in such extensive damage that they would be worthless, and could not be resold to anyone else.

Another form of secured loans are commercial ones that must be secured on business property. These can raise additional funds to improve the business, and it’s profitability.

However when the word, a secured loan is heard, what comes most readily into a person’s head is residential secured loan that are secured on private property.

Remortgages have a lot in common with secured loans when we are considering the residential kind, and they also are secured against the equity on a home.

Remortgages and secured loans need an asset on which to be secured, and what this asset is is the equity available on a property, and equity is the what remains when the mortgage balance is taken away from the value of the property.

This means that on a property of 160,000 with a mortgage of 100,000, the equity would would be 60,000. But on a property worth 160,000 and a mortgage of 160,000 there would be no availability of secured loans or remortgages.

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.