Secured Loan vs. Remortgage

Generally speaking, you will obtain a much better interest rate on a remortgage and your repayments will be lower. Whichever option you choose, you usually need to have equity in your property - if the price has risen since you purchased, you may borrow further funds against it. If prices have dropped, it may be more difficult for you to obtain further cash, although some lenders will lend up to 125% of your home's value, subject to status.

A remortgage is the right solution if you....

• Have taken out your current  mortgage more than six months ago.

• Have kept up your mortgage payments regularly, without missing any.

• Have kept up payments on ALL your borrowings, including credit cards, etc. regularly, without missing any.

• Are not in a big hurry for the money

 However, there are quite often good reasons for opting for a secured loan....

• If your original mortgage was taken out before you ran into debt problems, the chances are that a remortgage would mean you paying a higher interest rate on ALL your borrowings (i.e. the WHOLE mortgage). With a secured loan, your original mortgage stays at a competitive rate and you only pay the higher rate for the extra borrowing.

• If you are in a hurry, we can usually complete a secured loan within 14 days if it is less than £25,000 as these are regulated (Covered by the Consumer Credit Act of 1974). Unregulated loans for more than £25,000 are not subject to regulation and can be completed the next working day, provided that we have received all the supporting documentation.