| Most people need to borrow money when they want | | | | 25% APR and this makes improving and adding to the |
| to buy something large, to buy a car, etc. that is unless | | | | value of your property very costly. |
| they have enough money in the bank. People who are | | | | Holiday loans from banks normally have a maximum |
| quite well off financially with a good bank balance | | | | repayment period of twelve months. Homeowners are |
| even often prefer to borrow and to keep their money | | | | in the fortunate situation of being able to obtain money |
| safely in their account. | | | | cheaply. These loans are remortgages and |
| Having decided that additional funds are needed, the | | | | homeowner loans, also known as secured loans, or |
| next step is to ascertain the best way to obtain the | | | | even second mortgages which is exactly what they |
| required loan. If the loan is for a car, caravan, | | | | are. |
| motorbike or motorhome purchase, it is possible to be | | | | A remortgage at present can cost from as little as |
| granted a loan through a dealership. When wanting to | | | | 2%, and a secured loan from about 9%. There is no |
| carry out home improvements, a loan can be granted | | | | contest between these two home loans and the other |
| by the home improvement company. | | | | kind of loan for those carrying out home |
| If someone wants to splash out on a luxury holiday | | | | improvements. Remortgages and secured loans for all |
| they may require a loan to take a trip to their dream | | | | purposes, including holidays, can be taken out up to a |
| location, and can enquire at their own bank. There are | | | | twenty five period. |
| however drawbacks with the above methods of | | | | When used for vehicle purchase, it becomes possible |
| raising funds. | | | | to obtain a bargain by buying the car, etc. Buying a car |
| Firstly, by obtaining finance from the dealer you must | | | | in a private sale can give a saving of as much as or |
| pay the full retail cost for the car, etc., and the interest | | | | more than a third. |
| rates can be high these days, unless the manufacturer | | | | In addition to these purposes, remortgages and |
| is offering a special finance deal. It is usually unpopular | | | | secured loans also double as debt consolidation loans |
| vehicles that are available at bargain prices. There are | | | | which enable a homeowner to make massive savings |
| no offers available on the beautiful little Fiat 500. | | | | by rolling their credit card debts, personal loans, etc, into |
| Using a home improvement loan arranged by the | | | | one lower repayment each month. |
| home improvement company is expensive, at around | | | | |