Are Secured Loans About To Experience A Resurrection?
Remortgages and secured loans are both form of loans secured on the equity available on a residential property, and in spite of the fact that they have many things in common it is the secured loan we are considering here. Equity is basically the difference between the value of a property and the mortgage balance. To give an example for those not too well acquainted with the term, equity, if a house or flat is worth 340,000 and the mortgage secured on it is’0,000 the equity on this particular property would be 150,000. In the good old days before the recession, and how far away it all seems now, secured loans were available with all secured lenders at easily up to 95% LTV, ie. loan to value, and this applied to all secured loan lenders from Sterling, FNB. G.E., Future Mortgages, and so on and so forth, and this applied throughout the UK. 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. Secured loans were granted as if they were going out of fashion , and although sometimes the underwriting criteria was perhaps a little slack at times, these secured loans were a great useful product enabling secured loan applicants, both employed and employed to obtain a loan to use for a number of purposes. 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. It is equally frustrating for the many decent reputable secured loan brokers to be so frequently unable to obtain a secured loan for a customer which in the past would have been an application welcomed by the secured loan lenders as the main stay of their business. 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. Now with the Cardiff based secured loan lender, following the example of Black Horse, and increasing their maximum LTV from 70% to 80% there is yet a little more hope of the secured loan product seeing the recovery it so much needs. Looking to find the best deal on secured loans, then visit www.championfinance.com to find the best advice on secured loans for you. |