Tag Archives: mortgage
Problem remortgage: Loan despite of bad credit records
Due to some past mistakes it may happen that one will face credit problems. So when one switch to another mortgage may face hurdles. There are number of lenders who can provide mortgage to the people who are facing many problems like late payments, payment defaults, arrears, bankruptcy, missed payments, IVA and count court judgments in their names. With problem remortgage it has become easy.
To get the mortgage it is necessary to fulfill some eligibility criteria:
Applicant must attain the age of 18 years or above;
Applicant must be a domiciled of UK;
Applicant must possess a valid bank account in UK;
Applicant is doing a regular job and earning a £1000 per month.
Therefore, these mortgages are meant for those people or homeowners who wish to switch to another mortgage but are facing bad credit history. Lender will approve the mortgage only if he feels or convinced that the borrower can repay the amount on time. One has to show the current income papers and also convince the lender that repayment would definitely paid on time. Never miss any payment to avoid the problem in remortgaging. Problem remortgage helps the person in getting out of the debts.
It is better that one opts for these mortgages if one wants to release the equity in their home. One needs money for many purposes like for the purchasing of the car, a holiday trip, electricity bills, debt consolidation, home renovation, and examination fees, wedding, traveling, school fess and college fees, credit card dues, car repairing, medical bills, hospital bills, etc. The best thing of these finances is that one can get the low rate mortgage to get rid of the high rate mortgage. One can easily make lower monthly payments to the lenders of the remortgage.
Another best feature of problem remortgage is that one can extend the repayment duration. Bad credit is not a big problem here so anyone can apply for these finances without any hassles and one of the best ways to apply is through online mode. It saves time and provides fast approval in no time.
What is a Secured Loan and what are the risks? (Page 1 of 2)
A Secured Loan is a loan secured on the homeowners property very much in the same way as a Mortgage is. A Mortgage on a property is known as the 1st Charge a Secured Loan therefore becomes the 2nd Charge. If a Secured Loan is never paid then obviously the Homeowners home is at risk. With the Mortgage company having the 1st charge they therefore reclaim their money first. A Secured Loan Lender would then follow as they are the 2nd charge. It is worth remembering that a Mortgage and Secured Loan Company would only ever repossess a property as a last resort.
A Secured Loan is ideal for Homeowners who are looking to raise finance by using their home as security. Traditionally a Secured Loan can provide Homeowners with a lower APR than that of an Unsecured Loan. Obviously a Loan Lenders APR varies depending on the personal circumstances of the applicant. A Secured Loan can be used for a variety of purposes. The most common Secured Loan purposes are for Home Improvements and for Debt Consolidation.
Home Improvement Secured Loan
A loan that is secured on the applicants home address for the purpose of Home Improvements. The loan can be used for a new conservatory, renovations, extension or simply for double glazing. Almost any form of home improvements can be funded by a secured loan. You may find that some secured loan lenders will require proof of what you will be using the funds for. This can be provided by simply gaining a written quote from someone who you are looking to have the work done by. Chances are a Home Improvement Secured Loan will actually increase the value of your property so it will be money well invested.
Debt Consolidation Loan
A loan that is secured on the applicants home address for the purpose of Debt Consolidation. The loan is generally used to consolidate (pay off) all existing credit by putting it into one secured loan and this generally reduces the monthly payments and therefore frees up more of your monthly income to use for more exciting purposes than clearing credit cards, store cards, loans or hire purchases! Sometimes the only way in which the monthly payments can be reduced is by taking the Secured Loan over a longer period than what the existing credit is currently on. This can increase the amount in total that you will pay back but customers who take a Debt Consolidation Loan generally are more interested in the reduced monthly outgoing on credit.
A Secured Loan can be used for other purposes besides Debt Consolidation and Home Improvements. They can also be used for a Car, Holiday or Wedding. Generally Secured Loan lenders do not raise finance for Business. For a Business Loan it may be a better route to contact your local Bank or Building Society. Why would I want a Secured Loan instead of an Unsecured Loan?
There are many reasons why.
Repayment Period A Secured Loan can normally be taken over a longer period than that of an unsecured personal loan. Unsecured Loans can normally only be taken over a maximum of 7 or 10 years. Some Secured Loan Lenders will allow the applicant to take the finance over a 30 year period and most will allow the finance to be spread over 25 years worth of payments. Obviously by taking the loan over a longer period reduces the monthly payment to the applicant although you must remember the longer you take the loan over the more interest you will pay.