Secured Loans Equity Margins Slacken Off.

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-0,000.

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 secured loan lenders willing to advance secured loans to self employed applicants up to 100% LTV and these secured loans were granted on the basis of self certifications of income , and up to a maximum loan value of 75,000.

Perhaps these secured loans were too readily available when we think about it now, but although it all does seem rather reckless these self employed secured loan applicants were good business for the secured loan brokers as well as the lenders, and in general they did not default in payment.

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.

Last month Black Horse changed their maximum LTV to 80% compared to the previous 70%, some hope was felt throughout the ailing secured loan industry.

From the beginning of next month, ie. November 2009 the Cardiff based secured loan lender are accepting secured loan applications at 80% LTV compared to the previous maximum of 70%. This hopefully all bodes well for the secured loan product.

With the further announcement this week that the secured loan lender from Cardiff, announcing an increase in their LTV from 70% to 80% it is to be hoped that the secured loan industry will experience a much needed revival.

Let us hope that 2010 will be the best year for secured loans for some time.

Want to find out more about secured loans, then visit Champion Finance’s site on how to choose the best secured loan for your needs.

Related Blogs

• Related Blogs on Finance
• Adolescent Medicine Rockwall

Tagged with: debt consolidation loans • debt loans • Finance • homeowner loans • loan • mortgage • Real Estate • remortgage • secured loans

Filed under: Finance

Like this post? Subscribe to my RSS feed and get loads more!