The main features that unites remortgages and secured loans is the fact that they both rely on property.
These homeowner loans depend on the equity available on a property.
The fact that they are loans that depend on property means that remortgages amd secured loans are both finance for only homeowners can apply.
Secured loans are available from £3,000 up to £100,000 or sometimes more by referral, depending on the equity.
The best equity available at present is 85% for employed applicants and 75% for those who are self employed.
However for larger loans, the equity may well be reduced by up to a maximum of 60% or even less if the first security, that is the first mortgage, is with a non status lender.
The criteria for the income required by secured loan lenders vary from one lender to another and as they must be seem to be responsible lenders they have to ascetain that their borrowers can readily afford the payments.
One status secured loan lender, the Cardiff based Nemo Loans, take an applicants gross monthly income and then deduct £1,250 disposable income from that and allow 40% of the sum that remains to cover the outgoings vhich is the mortgage payment, the secured loan payment and any loans, credit cards etc. that are not being paid off by the loan being arranged.
Another secured loan lender, Blemain Finance, demands that the applicants have a minimum monthly income of at least £1,500 net.
They ignore all unsecured credit payments in the income calculation, and take 45% of income up to £2,000 net inconme and for bigger salaries 50% of the net income is taken to pay the mortgage and the secured loan.
When applying for a secured loan, the applicant must produce three consecutive wage slips, in addition to three months bank statements, proof of residency in the shape of something like a utility bill and this must be dated within two months old atthe most. Identification such as a passport or driving licence are also essential
The major differene between a secured loan and a remortgage is whereas a secured loan is a loan that does not interfere with the existing mortgage, a remortgage on the other hand pays of the current mortgage on the property and replaces it with a new one with a new mortgage lender.
An applicant for a remortgage must produce the same information as for a secured loan including I.D. wage information, etc.
The rules as regarding income is more complicated for remortgages.25 of yearly income as the largest mortgage or remortgage available and others take 4 times or so, with the Woolwich being the most lenient at five times the income.
However there are more detailed guides as regards income, with the The Woolwich again requiring the applicants to have e 751 disposable income left each month after all financial out lays have been made.
The bottom line is that this is only some information about applying for remortgages and secured loans and there are so many products on offer, at least for remortgages, that anyone considering changing their current mortgage would be best to consult a mortgage broker to enquire about all the options and the income calculation required, etc. etc.