The Revival Of Secured Loans, Mortgages And Remortgages
After an extremely rocky couple of years, matters are becoming better in the secured loans, remortgages, mortgages sectors and for borrowing in general
The home loan products of secured loans, remortgages and mortgages are reliant to a great extent on property values.
The fall in house prices had a devastating affect on these three home loans
A mortgage is the loan needed to buy a home, and with the fall in property prices and the lack of confidence in job security, people were not in the mood set to buy a new home for themselves.
When a homeowner takes out a mortgage he is tied in initially for a few years, after which in the past, the majority of homeowners sought a remortgage which is the moving from one mortgage provider to another.
Some homeowners wanted simply to obtain a cheaper interest rate and only remortgaged for the same value. On other occasions funds were released to do a variety of things.
With the drop in property prices, many would no longer benefit by taking out a remortgage as the equity was insufficient to obtain a really good deal.
Secured loans declined for the same reason as the other two related products.
Secured loan lenders went down from over twenty to fewer than a handful, and those that remained tightened their underwriting to such an extent that even the lucky homeowners with equity were no longer eligible to apply.
One secured loans lender has brought in once more self certification of net profit for self employed people, as long as the maximum LTV is 60% and that three months bank statements are provided.
Loan to value has now been slackened to 80% for employed applicants and 70% for those who are self employed.
Everything looks all set to improve with the slackening off of loan to values with secured loans now available at up to 80% for employed homeowners and 70% for those who are self employed.
Want to find out more about secured loans then visit Champion Finance’s site on how to choose the best remortgage for you.
