Is It Possible to Get a Secured Home Loan Without Having a Mortgage?

Yes you can get any no mortgage loan for your home. To get the benefit of a secured loan you don’t have to have a mortgage.

Though the secured loans are in most cases taken in addition with existing mortgage, it is possible to get a secured loan without a mortgage. In the first scenario, the mortgage company will have the right of first charge on your property and also will be first to get paid after the property is sold to pay the debts of yours. Secured lender will have the second charge right.

When you take out a No mortgage loan and when this home loan is secured, then the secured lender will be the first one to be benefited from the first charge. Unlike the loans with mortgage, here the lender will be paid first when your home will be sold to clear you out from debts. You don’t have to wait till the mortgage company gets paid then.

When you don’t have any mortgage then you must consider why you are opting for a No mortgage loan instead of applying for a mortgage. In most of the cases when one has no secured loan on your home, generally remortgage becomes their first option to go to. A mortgage will be beneficial as when it comes to interest rates, one is going to pay on their borrowing.

But that doesn’t mean that you will have to apply for a mortgage instead of a secured loan to get a house. However, in many situations a secured mortgage can be much better for you than a mortgage.

Here are some benefits of secured loans over mortgage when you want to take no mortgage loans:

·         Mortgage can be difficult to get now-a-days. The reason is mortgage lenders are becoming much more choosy when it comes to lending mortgage to someone. They don’t lend money to everyone. The problem mostly occurs to general self-employed people as they don’t easily get agreement for the mortgage.

If you have started trading for a very short time now or you might not have three years of company accounts, a secured loan may be a much better solution. The reason is the needful requirements to get such secured loan will be much less strict then. It is possible to get many loans even without or little proof of your stable earnings.

 

·         In addition to that, you may also have a not so perfect credit history. So, mortgage lenders will be pretty much reluctant to agree to your loan after looking into your credit history. A secured loan lender can be much more approachable to agree with your loan application.

 

·         The mortgage can result in significant costing. To get a home, you may have to pay a valuation fee and arrangement fee, as legal fees are involved in time of remortgage. You might have to commit to the mortgage company for at least two to five years.

When it comes to secured loans, these have much fewer initial fees. That means the set-up costs are lower. You can repay the loan even without any significant initial repayment charges here.