It is now obvious that the interest rates for unsecured loans are dearer than at virtually any other period previously and they stand at the highest rate for nine years which all appears odd when the Bank of England Base lending Rate is still at the lowest rate ever at only half of a percent.
In 2001 the Base Lending Rate was more than 5% higher than the very low 0.05% rate that exists at present.
Now that base rates stand at only half of a percent it appears to be odd that interest rates for unsecured loans are more expensive than they have been for all these years.
In addition to being very expensive these days, unsecured loans are hard to get but it has never been any different as unsecured loans have not never been available unless the borrower had a stellar credit reference..
An unsecured loan lender has not the confidence to completely believe that the applicant will repay the lborrowings, the loan provider always requires total proof of the reason for borrowing in the first instance.
Homeowners do not have to even consider the fact that it is not easy to obtain unsecured loans as they can apply for a homeowner loan also often called secured loans.
The name iexplains itself as secured loans are secured against some kind of an asset which is the equity on property and as such secured loans are only there for homeowners.
These secured loans are not as difficult to achieve as are unsecured loans and also because homeowner loans are secured , loan lenders have less strict underwriting attached.
This more lax underwriting for example means that no additional proof of the reason for the loan apart from stating the purpose for the loan on the application form is required.
Bad credit homeowner loans are available to homeowners with a bad credit rating although the equity is more strict and interest rates are more expensive , but the good aspect is that at least they are still available.
Remortgages like secured loans can be used by homeowners to raise money for any number of purposes meaning that both a remortgage and a secured loan are the best choices for homeowners.
In 2001 the Base Lending Rate was more than 5% higher than the very low 0.05% rate that exists at present.
Now that base rates stand at only half of a percent it appears to be odd that interest rates for unsecured loans are more expensive than they have been for all these years.
In addition to being very expensive these days, unsecured loans are hard to get but it has never been any different as unsecured loans have not never been available unless the borrower had a stellar credit reference..
An unsecured loan lender has not the confidence to completely believe that the applicant will repay the lborrowings, the loan provider always requires total proof of the reason for borrowing in the first instance.
Homeowners do not have to even consider the fact that it is not easy to obtain unsecured loans as they can apply for a homeowner loan also often called secured loans.
The name iexplains itself as secured loans are secured against some kind of an asset which is the equity on property and as such secured loans are only there for homeowners.
These secured loans are not as difficult to achieve as are unsecured loans and also because homeowner loans are secured , loan lenders have less strict underwriting attached.
This more lax underwriting for example means that no additional proof of the reason for the loan apart from stating the purpose for the loan on the application form is required.
Bad credit homeowner loans are available to homeowners with a bad credit rating although the equity is more strict and interest rates are more expensive , but the good aspect is that at least they are still available.
Remortgages like secured loans can be used by homeowners to raise money for any number of purposes meaning that both a remortgage and a secured loan are the best choices for homeowners.
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