Remortgages And Secured Loans Are A Better Option Than Unsecured Loans.

Remortgages And Secured Loans Are A Better Option Than Unsecured Loans.

The interest rates for unsecured loans are more costly than at almost any other period in the past and they are at the highest rate for nine years which makes little sense when the Bank of England Base Lending Rate is still at the lowest ever at only half of a percent.

In 2001 the base rate stood at 6% and yet then an unsecured loan was a number of APR points lower than at present..

With the base rates standing at only half of a percent it is a strange situation that interest rates for unsecured loans are have higher rates of interest than they have been for a long time.

It is more difficult than it has eve been to obtain unsecured loans in addition to their rates being higher than ever before. Unsecured loans were never available to those whose credit rating was low.

Because there is no security, when a person wants to apply for an unsecured loan for any reason, proof of the purpose of the loan is a requisite. and it does not suffice to simply write the reason for the loan on the application form.

For people who own their property there is no need to worry about unsecured loans as they have the better option of secured loans also known as homeowner loans.

The name is self explanatory as secured loans are secured against some kind of an asset which is the equity on property and as such secured loans are only there for homeowners.

Because these are secured loans, they have low rates of interest and are less difficult to obtain than unsecured loans and also the underwriting is less strict.

This slacker underwriting means that no additional proof of the reason for the loan is needed apart from stating the reason for the loan on the application form.

Homeowner loans are also available to people with adverse credit at a strict equity margin and a higher interest rate meaning that homeowners can get secured loans who would not qualify for unsecured ones..

Remortgages just as secured loans can be used by homeowners to raise money for any number of purposes meaning that both a remortgage and a secured loan are the best means for homeowners to borrow.