Changes Witnees In Homeowner Loans Loans And Remortgages

Posted June 15, 2010 – 6:39 am in: Loans
     

Both secured loans and remortgages have a lot in common while at the same time they are different in some ways.

The most important common feature that connects them is the they are both related as it were to property.

Remortgages and secured loans are both ways to raise additional funds by borrowing and the sum that can be borrowed is dependent on how much equity there is.

Equity is the balance between the value of a property and the mortgage balance that is already secured on it.

If a mortgage stands at 120,000, and the property is worth 220,000, the equity is 100,000.

Before the credit crunch it was possible to obtain a remortgage of 100% of the property value and the Northern Rock even advanced 125% mortgages and remortgages.

There are now only a few mortgage and remortgage lenders advancing as much as 90% LTV products and the rate for them are fairly high at up to or even slightly more than 6%.

At 90% LTv these rates are very costly, when we consider that there are rates of less than 2% for both a mortgage or a remortgage if the applicant has a deposit of 30% or sometimes 40%.

The cousin of the remortgage, namely the secured loan, which also requires equity has had the required equity made much more strict.

There is availablity of 60% LTV homeowner loans for self employed borrowers as long as they have been operating for at least six months.

These self employed loans are very useful to the self employed who have struggled for the past two years to obtain a loan of any kind and who require full accounts for a remortgage.

The 60% self employed loans are very handy for the poor old self employed who have been unable to get a secured loan or a remortgage over the last three years.

In spite of the few changes to secured loans and remortgages, one thing tht has remained constant is the fact that they can still both be used for a multitude of reasons, including debt consolidation.

Looking to find the best deal on secued loans, then visit www.championfinance.com to find the best self employed loans for you.

categories: secured loans,self employed loans,secured loan,self employed loans UK