Remortgages And Secured Loans Criteria Is More Lenient.
Posted June 18, 2010 – 7:17 am in: LoansSecured loans and remortgages are names known to many people without them really taking on board what these terms really mean
Remortgages and secured loans, otherwise called homeowner loans, are both sorts of home loans.
Secured loans and remortgages are united because of the fact that they are tied to property and the equity available on that property.
The word equity is in fact the sum that is left when the mortgage standing on a property is deducted from the value of the bricks and mortar of a property.
If a property is valued at 360,000 and the mortgage stands at 120,000, the available equity would be 240,000.
Based on the above example, a remortgage of 380000 would not be granted and neither would a secured loans of 190,000
Before the recession secured loans and remortgages of 100% or even more than that were on the finance market but this not the current position.
Now the best equity margins are 70% for employed applicants and 10% more than this for the employed. However some loan providers even limit the equity of those in employment to 75%.
Before the recession homeowner loans at 100% LTV were available.
Secured loans of 25% more than the property value used to be possible.
Even self employed homeowner loan borrowers could obtain a loan of up to 90% LTV and self declarations of income were accepted.
Self certs were virtually out lawed over the past few years, until now when Link Loans are now prepared to advance self employed loans.
We are referring to Link Loans who were forced to quit the market last year due to lack of funding.
Therefore although criteria is still more strict than before for remortgages and secured loans, matters look all set to improve.
Want to find out more about debt consolidation, then visit Champion Finance’s site on how to choose the best self employed loans for you.
categories: secured loans,self employed loans,secured loan,self employed loans UK
