Remortgage Loan

Key Facts illustration tailored to your specific needs will be provided when a referral is made for a residential property.

Secured Loan - Which is better for you?

Looking for cash backed up on your house? You have two major options. One remortgage will involve you switching your overall mortgages account to a new lending institution and, if necessary, lending some extra capital. Loan security means that your home loan stays where it is and you take an extra amount with a second, different creditor.

So to help you determine which could be more appropriate for you, here are four questions you should ask when considering a secure homeowner loan in exchange for a remortgage. Which are the setup costs and costs? A major difference between a homeowners loan and a mortgage refers to the setup fee and fee.

A number of costs can arise if you are planning to transfer a mortgage to another creditor, such as a rating commission, attorney's fees for the transfer, and a handling or accounting charge. Often these costs can be as high as several hundred lbs. As a rule, a secure owner-occupier loan attracts far less commission than a remortgage.

Will there be fines for abandoning your present creditor? When you have a reduced or bonded business on your principal claim, you may be "connected" with your present creditor. That means that "prepayment penalties" (ERCs) may apply when you repay your principal mortgages. A major advantage of a secure homeowners loan over a remortgage is that you do not have to disburse your outstanding home loan to lend extra money.

Is your present home loan remaining as it is and you take out a second loan with a new borrower. So if you have early redemption costs on your present mortgages, a remortgagegage can see you pay tens of thousands a pound in fines to your lending agent. Thus, a secure homeowners loan may be a better option for you as you can keep your mortgage as it is.

Are your personal conditions conducive to a re-mortgage? When you request a remortgage, a creditor will sign your request. When your conditions have altered since your initial hypothecation, you may find that it is more complicated to obtain a hypothec. You may find it hard to arrange a remortgage in these instances.

Loans guaranteed by homeowners have different subscription requirements. It is important to find out which options make more economic financial sense for you when considering a secure homeowners loan or mortgage. If, for example, you have tens of millions of pounds of " prepayment penalties " for repaying mortgages, a secure homeowners loan can be cheaper.

If, however, you have a lot of capital in your home, a good reputation for your mortgage and a high level of personal revenue, a mortgage can provide better value for your mortgage. In order to use your home to collect funds at a competing APR, please fill out this Homeowners Loan application forms.