Consolidation Remortgages: Arranged by Secured Loans

There is not much joy in life when debt becomes a problem. People see their debts as separate entities, and do not add them all up. When Mr Smith saw an advertisement for a credit card which guaranteed that almost anyone was acceptable to that credit card company he thought that it would be a good idea to make an application even although the interest rate was 39.5%.

 He accepted the card with a limit of 3,000 thinking that the payment was affordable, and the minimum payment per month if the card was at it’s limit of 90 may well have been within budget, but the fact that he already had a credit card with a 6,000 limit, a credit card with a limit of 9,000 and a third with a 5,000 limit seemed to have been ignored by him.

Consolidation remortgages and secured loans can be used for a huge variety of purposes such as car purchase, to fund home improvements particularly major ones, and even to pay for an exotic holiday or a dream wedding. In fact buying a car with either of these home loans is an excellent way to buy a vehicle in a way that can save money, as with cash in hand there is no need to go to a car dealership, but instead you can purchase the vehicle from an auction or from one of the many private sellers who advertise in the press each week.

Most remortgage lenders prefer to limit the LTV to 85% maximum, and the rule of thumb is,, the tighter the equity margin, the higher the interest rate is.At loan to values of 60%, remortgages are available at from 1.84% APR. Secured loans currently have just witnessed their LTVS being increased to 85% for employed applicants and to 75% for those who are self employed. This is an increase of 5%. It is possible to obtain a home owner loan if self employed and in business for a minimum of six months.

For homeowners with sufficient equity in their property, debt consolidation remortgages is best arranged by homeowner loans, and with rates from 1.84% for the former and about 9% for the latter, the savings that can be achieved are enormous. Homeowner loans are secured against the equity of the property and become a second charge on the property and the mortgage remains as the first charge. Remortgages are a new mortgage that replaces the existing mortgage on the property, and as such if the current mortgage has a balance of 100,000 and 53,000 is required for debt consolidation, the remortgage amount would be obviously 153,000.

Tenants are not eligible for secured loans or remortgages and the best way to sort out their debt problems is through debt management. There is no need to go on worrying about debt, as obtaining the right debt advice will offer the best debt solution for you whether the debt solution turns out to be through remortgages, homeowner loans or even debt management.