There are various types of loans which have one thing in common in that they are all secured on property.
Certain individuals are not really certain what these different financial home loan products are in fact.They are unsure of what is a mortgage, a remortgage and a secured loan.
A mortgage for example is a form of home loan required to buy a house, a flat or any other type of property. A mortgage is always required to buy a property unless the buyer is financially well off and can afford to pay cash for the property.
A mortgage is needed to buy a first property for someone who has previously stayed with their family or lived in a property for which they only paid rent either to a private landlord, a local council or even a housing association.
A mortgage can be obtained from a bank or a building society, and the prospective mortgage borrower will be required to go into a branch for an interview, and to produce certain documentation.
The paperwork you will have to take into the mortgage lender is wage slips if you are employed, and accounts if you are self employed. The mortgage lender also needs ID for all borrowers in addition to proof of residency and also bank statements.
This having to attend an interview face to face is not very convenient, and you can avoid all this by seeking the service of a mortgage broker who can come to your house or place of work and everything can be done without you even stepping over your own door.
As well as being less inconvenient for you you can in addition obtain a much better deal as the mortgage broker will have the whole of the mortgage market at his finger tips, and can offer you products from a large number of mortgage lenders and not just the one.
A remortgage operates in the same way as a mortgage and simply replaces a current mortgage.
A remortgage is often sought as a means of changing a mortgage from one lender to another to obtain a lower monthly repayment
At other times a homeowner takes out a remortgage for a greater amount to raise money to fund home improvements, arrange debt consolidation, etc.
The third home loan product, namely the secured loan can like the remortgage be used for almost any purpose whether it is for debt consolidation, buying a car, paying for a wedding, etc.
With a secured loan the existing mortgage is kept in place and the secured loan becomes a second mortgage standing totally separate from the first original mortgage.