Remortgage, Mortgage And Homeowner Loan Facts.

Inspite of the fact that most people know the terms secured loans, remortgages and mortgages, many are unsure of the differences between these three home loans.

One major thing that the three loans have in common is that they are all connected in some way to property, and they all need an asset on which to be secured and when considering private individuals, rather than businesses, the asset is the residential property of the borrower.

The first of these home loans, that is mortgages, are the means whereby the majority of people buy a property, whether it is a first property to get on the property ladder, or to move to another home.

Very few people pay cash for a property, as the average price of a property is about 170,000 and few have this amount of disposable savings, and so in a lifetime most people will have had a few mortgages, as the majority of people move house every few years.

There are a vast number of mortgage products on the market, approaching 2,000 at the moment, available from a number of banks and building societies,and all have different rates of interest, and so it always pays to shop about, or better still to consult an independent whole of the market broker who deals with all mortgage products and shopping about will be eliminated.

There are various types of mortgages such as tracker, variable and fixed, to name but three, and they all have their subtle differences.

A tracker rate tracks the Bank of England Base Lending Rate which is at an almost historic low of half of one percent, making the tracker product cheap at the moment, but naturally when the base rate rises, so too will a tracker mortgage payment.

Variable mortgages have repayments that can change either by going up or down ,and the changes depend not only on the base rate, but on whether the lender wants to alter the interest rate.

Therefore if you want to know how much your monthly payment is for the next few years, a fixed rate would be preferable, as it does not alter for the prearranged fixed term, that is normally from one to five years.

Remortgages are the exact same as mortgages as regards plans, interest rtes, equity margins, etc. There is one very important difference between mortgages and remortgages.A remortgage is the replacing of an existing mortgage on a property with a new one from a different provider, and this is often done to obtain a lower rate of interest.

At other times, homeowners will seek remortgages to raise additional funds that they can use for almost anything, including car purchase, home improvements, etc.

Homeowners often make use of remortgages as consolidation loans. converting into a better cheaper payment each month.

Secured loans or homeowner loans, if you prefer, are low interest loans that rank behind the existing mortgage, and just like remortgages they can be used for most purposes and again like remortgages they make good consolidation loans.


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Champion Finance are a long established company in the finance industry having been trading since 1985. Secured loans can be used for almost any purpose and they make excellent consolidation loans. In addition to secured loans, Champiion Finance arrange remortgages and mortgages from the entire market. Debt advice, debt consolidation and all debt solutions are also available.