Are Secured Loans About To Experience A Resurrection?
Although remortgages and secured loans have a great deal in common, as they are both are in fact secured homeowner loans which are based on whatever equity is available on a property.
For those unfamiliar with the word equity, what equity is is what is left when the amount outstanding in a mortgage. This means that if the mortgage balance on any particular house or apartment is 130,000, and the worth of the property is 100,000, the equity is 30,000.
Before the credit crunch secured loans were available very commonly at 90% to 95%, and most secured loan lenders granted secured loans at these equity margins.
There were even secured loan lenders willing to advance secured loans to self employed applicants up to 100% LTV and these secured loans were granted on the basis of self certifications of income , and up to a maximum loan value of 75,000.
Perhaps these secured loans were too readily available when we think about it now, but although it all does seem rather reckless these self employed secured loan applicants were good business for the secured loan brokers as well as the lenders, and in general they did not default in payment.
Nowadays self employed applicants need further proof of their correct earnings. There are still however a couple of non status lenders who still accept this income proof at tight loan to values and at high interest rates.
Last month Black Horse changed their maximum LTV to 80% compared to the previous 70%, some hope was felt throughout the ailing secured loan industry.
With Black Horse, the secured loan lender increasing their LTV for secured loans from 70% to 80% some hope of a resurrection is spreading in the secured loans sector.
With the further announcement this week that the secured loan lender from Cardiff, announcing an increase in their LTV from 70% to 80% it is to be hoped that the secured loan industry will experience a much needed revival.
Let us hope that 2010 will be the best year for secured loans for some time.
Want to find out more about secured loans, then visit Champion Finance’s site on how to choose the best secured loan for your needs.