There are three kinds of loans that have something very much in common with each other, and these are mortgages, remortgages and secured loans.
The unique feature that combines them is the fact that all of these three home loans must be secured by some sort of property, and these loans can either be secured by either a commercial or residential asset.
A mortgage is the loan needed to purchase a property unless the buyer has enough money of his own to buy outright and there are not many who are in such a fortunate position.
When we are talking about business mortgages what we are referring to is the value of the property that houses that business, and not the profit that this business provides.
The maximum mortgage available for buisness purposes is generally 70% loan to value, and this is due to the fact that the lender must be confident that the borrower will do his utmost to suceed if he has a substantial sum of his own money invested.
Residential mortgages for buying a private dwelling house are now available up to 90% of the value of the property, but this is only available from most loan providers for home movers, that is those who are changing from one bought property to another.
Lenders these days tend to limit first time buyers to a loan to value of between 80% to 85% which has now lead to many having to rent, as they simply cannot raise a big enough deposit.
Remortgages are really very much like mortgages, and what they are is the replacing of one home loan with another, as well as moving to a different lender.
A remortgage is often for the exact same amount as the current home loan but will have a better rate of interest that can save many thousands of pounds during it’s lifetime.
A remortgage is often taken out for a larger sum that grants capital that can be used for any number of reasons such as home improvemments etc etc, and can even double as consolidation loans.
Another loan that can be used for all the same reasons as a remortgage, apart from paying off the existing home loan, is a secured loan.
Secured loans are homeowner loans that are almost all purpose means of borrowing and can be used for such things as car,boat, motor home, caravan purchase, holidays, weddings, college fees, and so on, and just like remortgages are very useful means of debt consolidation that roll credit card, personal loan debts etc. into a single repayment every month which not only makes managing money much easier, but also saves large amounts of money.
We have only spoken here about a few pieces of information regarding these products, but hope that it has been useful and a professional finance broker will be able to answer any questions you many have.
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