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Both a remortgage and a secured loan are types of home loans that only homeowners can apply for as both of these home loans must be secured against something substantial and in the case of a personal secured loan or residential remortgage this asset is the security of the property.

Equity is the amount left when the mortgage balance is taken away from the value of a propertythe difference between the property value , and this security gives the lender confidence in the fact that the loan borrower will in fact repay all the money that he owes.

This is what makes the unsecured loan very much more expensive than the secured loan or remortgage. If a person defaults on an unsecured loan and he or she is a non homeowner the only way that a loan lender can seek retribution for breaking the agreement is by registering a default or a CCJ against the borrower concerned as there is no security to repossess, as there would be in the case of a homeowner.

This however means that the lender can have a very long wait before he receives the loan back that he granted that particular borrower, especially if the borrower stays on at the same address for a long time. If the borrower chooses to remain at the same address forever the lender may never be repaid.

Therefore it is the lack of security required for an unsecured loan that makes their rates higher, and it makes no sense for a homeowner to apply for this type of loan when remortgages and secured loans are available at low interest rates. It is a great benefit to use your status as a homeowner to borrow money at the lowest rates available.

It is therefore very sensible for a homeowner to avoid the unsecured loan and to apply instead for a low interest remortgage or secured loan which will cost a great deal less.

remortgage remortgage for you.