Secured loans which are also commonly called homeowner loans are not a new concept as homeowner loans were first introduced in their current form about three decades ago and they have always proved popular with homeowners needing finance.
Secured homeowner loans have to a great extent the same over all these years but like everything else some things about homeowner loans have altered.
One thing and the most important thing that has remained constant is tht they require collateral and the security needed in the case of homeowner loans is the bricks and mortar of the property
Equity is what is left when the mortgage balance is deducted from what they property is valued at, and as the property is owner occupied is the reason that the name for this financial product is homeowner loans or secured loans.
Since the credit crunch homeowner loans are available at 80% LTV for employed applicants and a maximum 70% for those who are self employed.
Before the recession secured loans were available at not only 90% or 95% but were granted up to 125% which meant that homeowner loans were available at up to 25% more than the property was worth , and this meant that although these are supposedly secured loans on a 125% plan there was little or no security.
Therefore one major difference in secured loans since their inception until now is the equity difference.
Another major change is in the number of secured loan lenders offering these loans
At the inception there was only two lenders worth considering but by the start of the credit crunch the homeowner loan market was settled with teens of the same secured loan lenders offering this product, but the majority of them have gone out of business.
Since the beginning of secured loans self employed were able to self certify their own income that is net profit without any proof but this has all gone and accounts are now needed.
Learn more about secured loans. Stop by Champion Finance’s site where you can find out all about homeowner loans for you.