Secured Loans/ Homeowner Loans And Remortgages Are A Good Alternative To Unsecured Loans.
Posted By on March 3, 2010
It has been discovered that the interest rates for unsecured loans are higher than at almost any time in the past and at their highest rate for the past nine years which all seems rather strange when the Bank of England Base lending Rate still holds at the lowest rate ever at 0.05%
In 2001 the base rate was at a high of 6% and yet unsecured loans were several APR points less than now.
Unsecured loans are therefore at their highest rate in spite of the low base rate now compared to the first few years of this decade.
It is also more difficult than ever to get an unsecured loan in addition to their rates being higher than before, but unsecured loans at anything like a low rate of interest have always really only been available to those with a stellar credit rating.
Having no form of security, when a person wants an unsecured loan for what ever purpose, he must produce proof as to the reason for the loan, and it is not enough to just write the purpose on the application form.
Homeowners do not even have to take account of the difficulty of obtaining an unsecured loan as they can apply for a homeowner loan known which is also known as a secured loan.
The reason for the term is obvious as these loans are secured on property and therefore only homeowners can apply.
Being secured loans, these homeowner loans have good rates of interest and are more readily available than unsecured loans as underwriting is more lax.
This slacker underwriting for example means that no further proof of the purpose for the loan beyond writing this on the application form will be asked for.
Bad credit secured loans are even available as secured loans to homeowners with poor credit ratings although equity is tightened and interest rates are higher, but at least they are still available unlike unsecured loans.
An alternative to a secured loan for a homeowner who wants a loan is a remortgage which has a multitude of uses, making secured loans and remortgages the best loans for homeowners.
Want to find out more about remortgages, then visit Champion Finance’s site to choose the best remortgage for you.