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.
Equity is basically the difference between the value of a property and the mortgage balance. To give an example for those not too well acquainted with the term, equity, if a house or flat is worth 340,000 and the mortgage secured on it is’0,000 the equity on this particular property would be 150,000.
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.
Secured loans were granted as if they were going out of fashion , and although sometimes the underwriting criteria was perhaps a little slack at times, these secured loans were a great useful product enabling secured loan applicants, both employed and employed to obtain a loan to use for a number of purposes.
Nowadays self employed applicants need further proof of their correct earnings. There are still however a couple of non status lenders who still accept this income proof at tight loan to values and at high interest rates.
The secured loans industry has been struggling and brokers have been frustrated at being unable to place secured loan applications most commonly because of equity.
With Black Horse, the secured loan lender increasing their LTV for secured loans from 70% to 80% some hope of a resurrection is spreading in the secured loans sector.
With Black Horse slackening off their loan to values last month from 70% to 80% the recovery of the secured loan became a slight possibility.
Let us hope that 2010 will be the best year for secured loans for some time.
Looking to find the best deal on secured loans, then visit www.championfinance.com to find the best advice on secured loans for you.