Business & Finance Finance

Go On Holiday Thanks To A Remortgage Or A Secured Loan

Is one of your dreams to own your own motorhome?

The problem is that you really do not think you have enough money to afford such a luxury item, although you have planned your first trip in your own motor home in your mind dozen of times.

You know that just like buying any other vechicle you can obtain the required finance from a dealership, but the interest rate can be expensive, repament periods can be short and you need to supply a deposit of at least 30% of the purchase price.

With a very basic motorhome costing a minimum of £30,000 up to £100,000 or much more for an American motor home, you will need a deposit of at least £10,000, and with repayment periods of normally a maximum of 60 months, the monthly repayments can also be outwith the budget of many people.

Those who own their own property have two much better ways of achieving their dreams, and these ways are by arranging a secured loan or a remortgage which are both homeowner loans that need the collateral of a property which means that only homeowners are eligible.

Secured loans and remortgages are both secured on the equity available on a property, and by this we mean the difference between the value of the property and the balance remaining on the mortgage. An example of equity is that if a property is worth £300,000 and the mortgage balance is £180,000 the avaiilable is £120,000.

However the maximum loan to value for secured loan applicants is currently 85% for employed borrowers and 75% for self employed,and so based on the previous example, the maximum secured loan for employed borrowers would be in the region of £100,000 and for the self employed would be eighty thousand.

Loan to value mortgages these days is 90% and as such on a property worth £300,000 a remortgage £270,000 could be granted.

Remortgages start with interest rates of less than 2% and secured loan start from 7.9% making these reasonable ways of borrowing.

They also eliminate the need for a deposit as they can fund 100% of the purchase price, and as their repayments can be spread over a 25 year period it makes them affordable to many people.

The best way forward is to go online and look for the website of a secured loan and remortgage broker who will gladly offer you a free no obligation quotation for the amount of loan you will require, and soon you can own the motor home you have always dreamed about.

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