How To Make An Application For A Secured Loan Or Remortgage
Only homeowners can apply for a homeowner loan or remortgage as they are both secured products.
homeowner loans, and as such only those who actually own their property can apply.
Both these loans have many things in common including the fact that they can be used for many different purposes such as car, caravan or boat purchase, paying for weddings, holidays, home improvements or a second or holiday home etc. They can also be used for debt consolidation which enables all credit card debts, personal loans etc. to be combined into one single low interest monthly repayment.
Both a remortgage and a secured loan use the equity available in the property to raise the funds for all these purposes.
With the disappearance of 125% secured loans, the maximum loan to value is 90%, but the largest loan amount on this plan is £15,000. Secured loans are available up to £100,000 at 85% LTV for employed borrowers and 10% less than this for self employed.
For remortgages there is no upper loan value providing there is enough equity, and the borrower has sufficient income to comfortably make the payments.
however with so many secured loan and remortgages available, the best course of action is to consult a professional mortgage or secured loan broker who will happily guide you every step of the way.
For secured loans the first step is to complete a relatively simple application form after which you will be provided with a copy of your loan credit agreement which will contain details of the loan amount, the interest rate being charged, the monthly repayment, in addition to all the conditions of your loan.
With the application which you will sign and the copy credit agreement the lender or broker will enclose a request for all the information needed.
What is required are 3 recent consecutive wage slips, proof of residency in the form of a utility bill or similar that must be dated within the previous 2 months, ID such as a driving license or passport, and it is essential all this information is original and not copies. Some lenders also require 3 months bank statements.
It is important to sign the application and return it with everything requested as soon as you possibly can in order that it can be thoroughly checked and all processing be done during your 8 day cooling off period.
At least 8 days after you receive the copy agreement, the one for signing will be sent to you by post.
As long as your credit profile is acceptable and all necessary references have been received by the lender, you will receive your loan funds within a few days of sending your signed agreement and signed legal charge.
The information required when applying for a remortgage is the same, but might be more detailed, and once again your chosen expert can guide you in the right direction.
