A Short Description About Secured Loans, Mortgages And Remortgages.

Most people know a bit about secured loans, mortgages and remortgaes but are unsure of exactly what these loans are.

They are all known as home loans as they need property as collateral.

Mortgages are the loans needed when a person wants to purchase a home.

Not many have enough money to pay for a property outright.

For some time, mortgage lenders limited the maximum loan to value for first time buyers to 75% which meant that it ws a pity for the many wanting to get their foot on the property ladder, as with an average home costing about £170,000, a deposit of over £40,000 was required

This has slackened somewhat, and as of last week Santander are advancing first time mortgage deals at 90%.,

There are fixed rate mortgages that, as it says on the box, fix the interest rate for a certain period which is normally from one year to five years

There are tracker mortgage deals that have interest rates that follow the base lending rate of The Bank Of England which makes them cheap at present, but when this rate goes up so will the mortgage rate.

The interest charged for these home loans varies not only from one lender to the other, but it very much depends on the amount of deposit offered by the borrower.

Remortgages are identical to mortgages as regards equity, interest rates and so on, which is to be expected when we consider that a remortgage is only a new mortgage arranged with a different provider either to obtain a lower rate of interest or to raise funds for almost any purpose.

Secured loans are homeowner loans that, like a remortgage, can be used for almost any reason, including debt consolidation.

However a secured loan, unlike a remortgage, does not take the place of the existing mortgage, and their interest rates, although still good at 9%, are normally more expensive than remortgages that commence at under 2% on a tracker basis for those with a 40% deposit.

Secured loans are excellent if a homeowner is in a tie in period with his mortgage.

These facts are only the tip of the iceberg, but I hope they have been useful.


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Champion Finance are one of the main secured loans brokers in the UK, and have been arranging homeowner loans since 1985. They also arrange remortgages and mortgages from the entire mortgage market. Every debt solution is also available to help those in debt to become debt free.