Remortgages and secured loans are like kissing cousins and why they are so connected is because they are a type of borrowing that only those who own their own property can make application for..

Remortgages and secured loans are both home loans for which only homeowners are eligible to apply because they both require security on which to be secured and the security in this case is the value of the property.

To clarify the meaning of the word equity it is the difference between the value of a property and the amount of mortgage secured on it..

If the equity available on a property is 50,0000 and the value is 140,000 it would mean that the mortgage balance is 90,000.

Equity can release funds fo a number of reasons and the equity so released can be carried out either by remortgages or secured loans.

Remortgages and secured loans are both home loans that can be good ways of purchasing a car, a boat or any other vehicle, and in fact remortgages and secured loans are exceptionally good methods of arranging this as they give homeowners cash in hand to buy the vehicle from a private person rather from a dealer ship making the car less expensive.. Remortgages and secured loans can also be used to purchase a car at auction

Both secured loans and remortgages can be used to pay for home improvements, to pay for school or university fees, to go on a cruise, a safari or any other sort of holiday or even to pay for a wedding and weddings can cost mega bucks now a days.

A very common use for both secured loans and remortgages is to form debt consolidation loans which is when the low cost secured loans or remortgages funds pay off all outstanding debts on credit cards, hire purchase agreements nd so on. Credit cards have disgraceful interest rates of often up to and over 40% APR and therefore the savings made by remortgages and secured loans being used for debt consolidation can be massive.

Debt consolidation saves so much that it takes away all the worry of too much debt or or if there are too many different debts , and so debt consolidation can at the end of the day be the best and most welcome purpose for taking out secured loans and remortgages.

One big difference between remortgages and secured loans is that a remortgage takes the place of the current mortgage and as such remortgages are a first charge. On the other hand secured loans stand as a different loan registered behind the current mortgage making a secured loan a second charge.

Other differences are in the interest rates charged which are lower for remortgages than for secured loans. Secured loans however take half the time to arrange.

The fact is that although remortgages and secured loans have much that connects them, they also have their differences.

Learn more about debt consolidation Stop by Champion Finance’s site where you can find out all about a remortgage and what it can do for you.