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 variablbe mortgage and they would prefer to take another fixed rate remortgage.
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.
Homeowner loans can be raisisd 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 exisiting 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 improvemnts 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 specialize 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
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
Author: LizMoirThis author has published 8 articles so far. More info about the author is coming soon.