When a homeowner decides that he must have extra money for any number of reasons there are two main means of raising this money and these ways are either secured loans or remortgages.
Both secured loans and remortgages are loans that are secured on the asset of a property, and therefore only those who own the property in which they live can make an application.
Which is actually better depends on certain circumstances, and there are occasions depending on personal circumstances when one is preferable to the other.
Secured loans can be the method to choose if a homeowner is tied in with a mortgage deal. When someone arranges a mortgage they have to stay with the same mortgage product for a certain number of years and if they remortgage in the course of this period an early repayment penalty applies.
The penalty can come to a considerable sum of money of between 2% to 5% of the outstanding mortgage balance. Therefore during a tie in period secured loans are better, as it is a totally stand alone product that will not interfere with the current mortgage.
When the money is needed in a hurry, again the secured loan is the better choice, taking half the time of the remortgage ,and secured loans take from two to three weeks compared to four to six weeks for a remortgage.
Secured loans, although certainly more expensive than remortgages mean that remortgages are often more popular.
Secured loans at this moment in time cost from about 9% which is still a low rate, but certainly not as low as remortgages.
However they are both excellent loans.