Is The Secured Loans Market Seeing A Recovery?
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.
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 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 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 Black Horse slackening off their loan to values last month from 70% to 80% the recovery of the secured loan became a slight possibility.
Let us hope that 2010 will be the best year for secured loans for some time.
About the Author Looking to find the best deal on
| 
Processing ...
