Homeowner loans and remortgage guide
By owning your property and looking to raise finance can be a confusing time as to where you are going to get the best deal for your circumstances.
When you are a homeowner the cheapest way to borrow money is by taking out a remortgage on your property. A remortgage is when you take another mortgage out to increase the borrowings or many take a remortgage to get a much better rate than they are currently getting with there current mortgage lender or some people might be coming out of a fixed rate remortgage and going on to a variable mortgage and they would prefer to take another fixed rate remortgage.
Cheapest way to borrow money
A remortgage is the cheapest way to borrow money and raise capital for homeowners but sometimes if a homeowner would be better off applying for a homeowner loan instead of a remortgage.
Homeowner loans can be the best option if you are tied into your current mortgage deal and to come out of this would cost you in penalties or some are happy with their current mortgage terms and conditions and would prefer not to change their mortgage deal on these conditions they are best to think about raising funds by applying for a homeowner loan.
Homeowner loans are probably the second cheapest way for homeowners to borrow money as a homeowner loan is a secured loan that is secured on your property and really is classed as a second charge on your property. As the lender has a charge on your property and feels more comfortable in getting their money back, the rates are usually lower than for an unsecured loan.
You can get a loan quickly
Homeowner loans can be raised quickly and can be approved much faster than can a remortgage and if you need the finance in a hurry a homeowner loan could be the solution. Homeowner loans can be used for any purpose. With a homeowner loan you are releasing the equity that is tied up in your property and many homeowners are sitting with a lot of equity and by taking out a homeowner loan you can release this money that is tied up in your property.
All homeowners should be eligible for a homeowner loan if they have equity in their existing property. Equity in your property is the difference from your property value and your mortgage balance. The difference betweeen is spare equity that you can borrow up to.
Many homeowners when looking to raise money might already have a secured homeowner loan on their property but this should not cause any problems as if you already have a secured homeowner loan on your property you can raise extra money to pay the existing homeowner loan off and the homeowner loan lender will settle your existing homeowner loan and send you out the remaining amount.
Homeowner loans can be used for anything and by taking out a homeowner loan for home improvements or an extension on your property your property value will increase.
Homeowner loans can also be paid back at any time. There will be a penalty but the terms and conditions of this will be set out on your homeowner loan agreement.
There are comapanies online that specialise in homeowner loans and many of these companies will deal with all the homeowner loan lenders that are in the market place and by applying to a company that deals only with homeowner loans and have a large panel of lenders you will get the best rates that are available.
The only way to release equity from your property is by taking out a remortgage or homeowner loan and if you do not move house to a cheaper property you will never get advantage of the spare equity in your property and I can imaging that most homeowners would like to get access to the equity that they have in their property. Releasing this equity could do a lot of nice things eg. to buy a car, go on a luxury holiday, on a cruise, home improvements, debt consolidation or just spend the money when and if required.
The next time you are looking to raise money all homeowners should look at the cheapest way to borrow money and a homeowner loan or a remortgage will be the best choice for them
Bad credit mortgages
Bad credit can be financially crippling when trying to apply for a credit card or a loan or even more of a problem when applying for a mortgage. Bad credit can cause many sleepless nights and family stress, while trying to acquire a mortgage for your new home.
It is very easy indeed to lose your good credit status, a few late payments, or one missed payment can seriously damage your credit rating. A couple of weeks off work, sick, or some unforeseen large payment can easily damage your credit. Making it difficult to get a mortgage for your dream home.
Many people will turn to companies that specialise in helping people repair their credit status. These people may not realize that having bad credit does not necessarily bar you from getting a mortgage. It may, make it more difficult, and a little more inconvenient, but it certainly does not mean that mortgage is beyond your reach.
A bad credit mortgage may in fact be the best way of repairing your damage credit and regaining the confidence of lenders of all kinds. One of the main purposes of the bad credit mortgage is to repair the damaged credit score, and also get individuals back on the road to financial security.
Bad credit mortgages will give you the opportunity to show lenders and credit reporting agencies that your credit status was caused by situations outside of your control and you are in fact, well capable of making regular payments.
Make regular payments shows lenders your a good payer
Making these regular payments can quickly show to lenders that you are a responsible borrower who wishes to resolve their credit history problems.
The first thing you need to do to obtain a bad credit mortgage is to find a company to lend you the money. It is not advisable to do this on your own unless you have considerable knowledge of the mortgage market.
It is quick and simple to secure the services of a mortgage broker, who has the knowledge and the skill to bring you together with a quality mortgage lender who will suit your needs.
When you find a broker, you need to make him aware from the beginning that your credit is less than perfect. That way, he can save time by knowing which lenders may be suitable for your needs.
Not only can a bad credit mortgage help you to resolve your credit score problems. It can also be used to fix some of your financial credit problems as well.
By credit mortgage can be used to fund paying off some of your existing debts, such as credit cards and car loans. Lowering your monthly payments by rolling all his debts into one payment, which will be far more affordable for you.
Some lenders specialise in bad credit loans
Some companies now specialise in these kind of mortgages, and are sympathetic to people who have found themselves in difficult financial and credit situations. They understand that circumstances beyond your control may have forced you to miss a couple of payments on a credit card. But that does not necessarily make you a bad risk of paying your mortgage in a timely fashion.
There are many mortgage brokers, some of them online, who can point you in the right direction and give you lots of useful advice about how to locate the best mortgage provider for your bad credit mortgage situation.