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.
What is meant by equity is really the gap between the balance of a mortgage and the value of the property on which the mortgage is secured.This means that the equity on a property would be 100,000, if the value of the property is 230,000 and the mortgage secured on the property is 130,000.
Up until 2007, when then the UK recession commenced many secured loan lenders such as Paragon Personal Finance, EPF, Future Mortgages, EPF, First Plus, etc. etc. all were only too happy to advance secured loans at 90% to anything up to 95%, and this applied to all secured loan lenders.
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.
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.
From the beginning of next month, ie. November 2009 the Cardiff based secured loan lender are accepting secured loan applications at 80% LTV compared to the previous maximum of 70%. This hopefully all bodes well for the secured loan product.
With Black Horse slackening off their loan to values last month from 70% to 80% the recovery of the secured loan became a slight possibility.
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.
Learn more about secured loans. Stop by Champion Finance’s site where you can find out all about secured loans and what they can do for you.