There are a number of different loans that have so much in common that they are linked by the common name of home loans.
These home loans are all connected to property and that is the reason for the general term.
Some of the home loans included in the group known as home loans are secured loans , A.K.A. homeowner loans, as well as mortgages and remortgages.
In spite of the fact that mortgages, remortgages and secured loans have a lot in common they are used in different ways.
Mortgages are the home loan that everyone needs to either get on to the property ladder or to buy a second, third or fourth property, etc.
Most people move to a different property after a number of years and so they have to apply for a number of mortgages over a period of time.
Mortgages are normally set at their original rate for a certain number of years during which they would have to pay a penalty if they settled the mortgage early, and this applies to both tracker and fixed rate mortgages.
However after the agreed period most homeowners decide to remortgage rather than stay with their own mortgage provider, making a remortgage the moving of a mortgage from one mortgage lender to another.
On some occasions a homeowner arranges a remortgage to obtain a better interest rate than the SVR of his current lender and at other times he wants to raise additional funds for various purposes.
Homeowner loans or secured loans are very much like remortgages but they do not replace the existing mortgage but stay as a separate entity behind the current mortgage which stays exactly as it was.
Both remortgages and secured loans can be used for many purposes including fitting a new kitchen or bathroom , building a conservatory to buying a caravan, going on a cruise or almost any other reason.
A very popular use for both secured loans and remortgages is for debt consolidation which is the combining of expensive credit card debts and personal loans into the one and a low interest remortgage or homeowner loan replaces all other debts.