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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.
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.
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 100% LTV secured loans available to self employed people and they could even declare their own income on bill head with out any back up proof of their actual earnings. This loan was available up to a secured loan sum 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 declarations have all but ceased and back up proof in the form of an accountant’s letter or even full accounts are now required, leading to many would be secured loan applicants being refused the secured loan they seek and which they can comfortably afford to pay back.
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.
The most important feature for obtaining a secured loan has been the equity in the property, although a credit rating is also taken into consideration.
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.
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