The words remortgages and secured loans are fairly well known to most.
It is important to start by explaining the different uses for these three home loans.
Whenever a person makes up his mind that he wants to buy his first property or to move from one bought property to another, a mortgage is the order of the day, as in fact it is the means by which an individual buys a home.
Normally homeowners choose to move home every two or three years, and in general their property will be worth considerably more when they leave it than it was at the being, due to the fact that properties have the habit of doubling every seven years approximately.
In the past, many more people were in the position of being able to get a mortgage than now a days, due to the restricting of loan to values, in addition to much less relaxed underwriting in general.
Up to the start of 2007, 125% mortgages were available from quite a number of lenders, but over the course of the next three years loan to values were 85% maximum from most lenders and from 90% for a few.
Although, as already stated, many people opt to move house every few years, others prefer to stay put and choose to change mortgage every so often that usually corresponds with the end of their mortgage tie in period.
This changing from one mortgage provider to another is what is known as a remortgage which is sometimes for the same amount as the current mortgage, while at other times a larger balance is requested to raise funds for any number of reasons, including weddings, home improvements, debt consolidation etc.
Just like mortgages, remortgages fell, as they have the exact same underwriting as mortgages.
Mortgages and remortgages are first chages on a property, and this is the main difference between them and secured loans, as a secured loan is a second charge that ranks behind the mortgage.
Secured loans have a vast array of purposes, and are to a great degree all purpose loans that can pay for cruises, school or college fees, or also makes excellent consolidation loans.
A few years ago secured loans were an extremely popular way for homeowners to borrow, but due to the same reasons as the other two home loans, these homeowners loans also decreased.
Now at last however, matters are improving with a slight relaxing of loan to values, acceptable status etc, all meaning that homeowner loans in general are in a much better shape than they have been for many years.