There are a number of ways in which a person can raise additional funds, two of which are remortgages and secured loans, and although they have their similarities, there are also several differences involved.

What connects them most concretely is the fact that they are both connected in some way to property.

Both a remortgage need the security of a property, and the amount of security which leads to the maximum that can be borrowed depends on the equity.

Equity is the balance between the value of a property and the mortgage balance that is already secured on it.

If a mortgage stands at 120,000, and the property is worth 220,000, the equity is 100,000.

Prior to the credit crisis remortgages of up to 100% were available and one lender, namely The Northern Rock, were even prepared to grant a remortgage, as well as a mortgage, at up to 25% more than the property was worth.

These days equity has been very much restricted, and there are not many mortgage providers prepared to lend at 90% any more, and the lenders who do make the interest rates expensive at often between 6% to 7% APR.

These 90% LTV rates re very costly when we remember that it is possible to obtain a remortgage or mortgage at less than 2% if the equity in the borrowers property is beteeen 60% to up to 70%.

Secured loans are secured also on the equity of a property and again as with their friend the remortgage, the equity needed for secured loans is now much less than pre recession.

The equity is a maximum these days of 70% for the self employed and 80% for self employed.

There is one secured loan lender who advances homeowner loans at a maximum of 60% for self employed with no accounts who have been trading for at least six months.

The 60% self employed loans are very handy for the poor old self employed who have been unable to get a secured loan or a remortgage over the last three years.

In spite of the few changes to secured loans and remortgages, one thing tht has remained constant is the fact that they can still both be used for a multitude of reasons, including debt consolidation.

Want to find out more about secured loans then visit Champion Finance's site on how to choose the best remortgage for you.