Independent Secured Loan Specialists
claim a 2% cashback payout on all UK secured loans

Secured Loan vs. Remortgage: The Pros and Cons

To understand a subject on secured loans versus remortgage options you need to know what the differences are in the options.  A secured loan is a loan that is backed by some form of collateral like a piece of property, which can also be said of the remortgage.  The differences come in how to obtain the loan and the quickness with which you can obtain the loan or mortgage.  Below we have looked at the pros and cons of each option to help you determine what might be best for you and your family.

Secured Loans

  • Secured loans offer closing within 21 days from most lenders. For many borrowers the speed at which the loan is granted is an important factor.
  • The repayment period can be more varied than a remortgage in which you have up to 40 years to pay the debt.
  • Consider the case when a borrower's credit rating and personal circumstances have deteriorated since taking out the first mortgage. Then it would be far cheaper and efficient to leave the existing loan as is and raise the extra funds that are needed by way of a second charge or secured loan.
  • Secured loans also tend to be rewarded to even those with credit problems; although the interest will be a little higher for poor credit history.
  • The cost of secured loans may be a little less in the arrangement fees, legal fees, and administration fees.
  • Typically by name the secured loans will have higher interests than some remortgages due to the type of lender.  This rate is considered a non- conforming rate because the lender doesn’t have to go by the base rate of the Bank of England, and remortgages do.
  • Secured loans can be cashback loans in which you have an immediate and extra 2 percent payout awarded that is not paid back.
  • Secured loans will have closing fees associated with the loan and these are usually not incorporated into the loan.  However, there is usually not a prepayment penalty for paying the loan off early.


  • Remortgages have higher interest rates for individuals with credit arrears.  The rate must be conforming to the Bank of England which can sometimes make the interest rate less, but not always.
  • Remortgages will have high valuation, administration fees, lender arrangement fees, and legal fees.  There are can also be broker fees.
  • Remortgages can sometimes come with pay-off penalties, which the secured loans don’t have.
  • Remortgages can be more difficult to obtain if you have had credit issues in the past. The lender has to finance a larger sum of money and this is harder the current market conditions.
  • It will take at least 4 weeks for a remortgage to go through and often much longer.
  • Remortgages may also require closing costs to be paid by the consumer upfront rather than being rolled in the loan, but this is not always the case.

There are definitely benefits to remortgages as well as secured loans.  It will depend on you as the consumer to decide what is more important to you at the time.  Speed to close on the loan can be of the utmost importance to some facing the adjustable rate mortgages with interest rates reaching 9 or 10 percent.  You might not have the time to wait on a remortgage with a lower rate, whereas the secured loan can be obtained quicker.  There are also no penalties associated with secured loans which can make them more attractive.

What is a Secured Loan?

Homeowner loans, second mortgage, home loans, second charge, secured loans these are all related terms. Read more... Credit Crunch

How to Avoid Damaging Your Credit File

Simple tips to protect your credit record Read more... Credit Crunch

Credit Crunch Explained and its Impact on the UK Economy

What is credit crunch is all about? What is does it mean for us? Read more... Credit Crunch

Secured Loans to Consolidate Credit Card Debt

Use the equity in your property to simplify your finances and save money Read more... Credit Crunch

Secured Loans for Home Improvements

Don't delay that extension,loft conversion or emergency repair work. Protect and increase the value of your main investment. Read more... Credit Crunch

Every Person Taking out a Secured Loan Should Look at Cashback

Why pay more for exactly the same product? Cashback is available on all UK Secured Loans. Read more... Credit Crunch

Secured Loans For Your Wedding

Enjoy the big day in style without fretting over cost: first get the finance in place. Read more... Credit Crunch

Secured Loans - A Review Of The UK Market

In a changing market use the internet to find the best deals Read more... Credit Crunch

Home Loans Explained

Learn more and grasp the essentials about home loans Read more... Credit Crunch

Lenders' Cash Funds Are Still Available Despite The Credit Crunch

But what criteria are lenders applying? Read more... Credit Crunch

Cashback credit cards give you extra cash every time you spend

Get the best cash back credit cards and earn cashback while you spend Read more... Cashback Credit Cards

House Prices – Facts That Maintain The Value Of Your Home

An analysis of the latest in UK house prices Read more... House Prices UK

Homeowner loans : 10m of Government help on debt advice services

Details of how the government intend to improve debt advice services Read more... home owner loans

Say Goodbye To Your Expensive Credit Card Balances

Too many credit cards? Here's how to make a fresh start and simplify your finances Read more... Credit Cards

Cashback is an easy way to cut your bills and buy most things online cheaper

Find out how use cashback offers to buy online purchases cheaper Read more... Cashback offers

Reasons for a Secured Loan or Homeowner Loan

Refurshing your home, buy-to-let, debt consolidation, wedding, business start-up, holiday Read more...Reason for a secured loan

Home Loans : A Simple Guide

Read more...Home loan guide

How To Improve Your Credit Rating

Find out simple ways to improve your credit rating and credit score, and therefore get offered a better individual interest rate on your secured loan.Read more... Improve your credit rating

What is the Credit Crunch?

What are the implications of the credit crunch Read more... Credit Crunch

Guide to Interest Rates

If you don't know your APR from your Repo Rate then Read more... interest rates

Understanding Loan Jargon

If you've come across a phrase or term related to loans that your not sure about, or you want to learn more about loans then browse the explanation in this comprehensive list of Loan Jargon terms. Read more... Loan Jargon

Back to ArticlesBack to Advice Index

Search the market for an individual loan quotation ->>SEARCH & QUOTE<<-