Secured loans and remortgages are only available to homeowners as they must be secured on the equity of a property. Equity is the balance left when the the outstanding mortgage is deducted from the value of a property. This means that if a homeowner has a mortgage of £130,000 secured on a property worth £360,000 the equity would be £230,000.
Contrary to the experience of the past two odd years when house prices have fallen, property values in the UK normally rise at a steady pace, and therefore if you are one of those individuals who constantly moves house frequently taking out the maximum mortgage at each move, most people have a considerable sum of equity on their property.
If this is you and you have a good steady salary to comfortably afford the repayments, taking out a remortgage or a secured loan for almost any purpose is a good low interest way to fund almost anything.
Secured loans, otherwise known as homeowner loans can be used for almost any purpose such as to buy a vehicle, to do external and internal homeimprovements or very commonly these home loans are used for debt consolation which entails clearing off all high interest credit cards,personal loans etc into the one much lower interest monthly payment.
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