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Remortgages and homeowner loans are both only available to homeowners as both require to be secured on an asset and in the case of remortgages and homeowner loans this asset is a residential property.

A remortgages is when a homeowner wants to move his mortgage from one mortgage lender to another. As there is such a vast array of mortgage lenders all offering hundreds of mortgage and remortgage products changing from one bank or building society to another can offer the prospective remortgage borrower a considerable sum of money in his repayments.

This is the reason why homeowners often opt for what is called a like for like remortgage meaning that they take out a remortgage for the exact same amount as their current mortgage without taking out any additional funds.

On other occassions a homeowner wants additional funds to use for a variety of reasons and when this is the case he can choose either a remortgage or a homeowner loan both of which have a multitude of uses.

If the remortgage is the choice it means that the current mortgage will be repaid and additional funds added. Therefore if the current mortgage balance is £170,000, and an additional sum of £60,000 is required a remortgage of £230,000 would be required for this purpose.

A homeowner loan in no way interferes with the exsiting mortgage meaning that if the existing mortgage is £120,000 and the extra money needed is £35,000, the mortgage of £120,000 stays untouched and a homeowner loan of £35,000 woulod be needed as a totally stand alone financial product.

A remortgage, as it becomes in fact the new mortgage, is registered at the Land Registry as a first charge, and the previous mortgage lender will be removed. If the previous mortgage lender was for example The Nationwide and the remortgage is with The Abbey, the Land Registery will alter to show The Abbey in place of The Nationwide.

A homeowner loan is also secured and registerd at the Land Registry as a second charge behind the first mortgage. Therefore based on the previous example the Land Registry would show The Nationwide as the first charge followed by the name of the homeowner loan lender such as G.E., Nemo, Prestige, etc.

Both remortgages, when they are for capital raising, and homeowner loans can be used for any legitimate purpose such as a wedding, a second home in the UK or anywhere in the world for that matter, to buy a vehicle whether it is a car, motor bike or van or even a lorry, to pay for homeimprovements, etc. etc.

Before deciding on whether a remortgage or homeowner loan would be better a homeowner should obtain quotations for both to compare what would be the better buy in the long term. An ideal person to consult about this is a homeowner loan or remortgage broker.

A mortgage or homneowner loan broker is always the very best person to consult regarding arranging a homeowner loan or a remortgage as he is the expert in both these home loan products, and can obtain quotations for homeowner loans and remortgages from every single lender in the whole of the country. There is absolutely no need to shop around for quotations when the broker will only too gladly provide you with free no obligation quotations for every homeowner loan and remortgage.

When you are happy with the quotation you can choose whether a remortgaqge is preferable to a homeowner loan or visa versa, and then the broker can arrange everything on your behalf.

Liz has worked for years as a homeowner loans , mortgage and remortgage underwriter.She arranges homeowner loans and remortgages for all purposes including debt consolidation.