Secured Loans Are Improving

Posted November 11, 2010 – 7:19 am in: Loans
     

Since the credit crunch , secured loans have been up and down with during that time they have been through more changes than normal.

Secured loans, since their start nearly thirty years ago, were always thought to be one of the first options for homeowners who wanted to raise funds for most reasons.

Secured loans had low interest rates, because they were in fact secured which made the lender feel safe that the loan would be paid back before almost any other loan,apart from the mortgage.

They were also very common due to the fact that they could be used for almost anything.

Homeowners often used secured loans as consolidation loans which meant that a single cheap interest debt consolidation loan took the place of all the different credit cards, personal loans, etc.

Until the recession, it was possible for a homeowner with almost no equity in his property, to get homeowner loans as there were loans available at 25% more than the value of the property.

Self employed were never able to obtain 125% secured loans but they were eligible for loans at 90% LTV and supply a self certification of net profit as the only income proof needed.

125% plans perhaps worked when property prices were on the rise , but when they plummeted it becomes impossible.

Secured loan lenders also started refusing homeowner loans to self employed borrowers without full accounts, as self declarations were no longer accepted. Many of the self employed were no longer able to get obtain loans.

Secured loan lenders went out of business ceased one after the other and they most are still not trading.

There is however one lender who is again granting secured loans, as they have a backer again in the shape of RBS. This is Link Loans who are now granting loans to self employed homeowners at a maximum equity of 60%. The borrower must also provide the last three months bank statements.

These self employed loans will be handy for many homeowners.

Looking to find the best deal on consolidation loans then visit www.championfinance.com to find the best deal on a remortgage for you.

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