home : articles : Mortage News : What Is Advantageous About Secured Loans, Debt Consolidation Loans And Remortgages
What Is Advantageous About Secured Loans, Debt Consolidation Loans And Remortgages
Posted on 07.27.2010 : Authored by Sandra Forrest
There are always times when a person needs some additional money and that is when the decision has to take place as to the best means to achieve this.
There are not many people who never need to borrow, as those rich enough to avoid borrowing are few and far between, and therefore one thing common to most is the fact that from time to time most people need to borrow.
The borrowing of money has the blanket term of loans.
There are two main groups of loans one of which is the unsecured group and the other is secured.
The name unsecured is self explanatory in that obviously these loans need no security, and are granted to the borrower in an individual basis.
Due to the fact that unsecured loans require no form of security they normally have fairly high rates of interest and an added disadvantage is that they are hard to get these days.
Yet another bad point about unsecured loans is the fact that the maximum loan value is usually at the most 15,000 and the maximum time to pay them back is sixty months.
When a person wants to borrow an unsecured loan the reason for borrowing must be proved.
When applying for an unsecured loan to carry out home improvements, several estimates are needed to prove the cost and so on.
When buying other things with an unsecured loan such as a car, caravan, holiday, etc. definitive proof must be offered.
Tenants who only rent their property have one choice of borrowing and one choice only, and that is to take out an unsecured loan.
Homeowners wanting to borrow are in a much better position and have a choice of low interest options.
The better situation for them is the fact that they are eligible for secured loans and remortgages.
Both a remortgage and a secured loan have many uses.
Unlike unsecured loans, secured loans can be achieved without the applicant providing proof of what the loan is to be used for and it is the same with remortgages.
Unlike the short repayment period for unsecured loans, secured loans and remortgages have repayment periods of up three hundred months.
As well as remortgages and secured loans being used to pay for cars, holidays, etc. they often double up as debt consolidation loans.