March 10th, 2010
Secured loans otherwise known as homeowner loans have been a feature of the UK finance industry for some considerable time now as they go way back to the early 1980s., and homeowners have always regarded these secured loans as a good way to obtain a loan.
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.
One big change therefore since secured loans were introduced until now is the equity margins acceptable.
Another big change is in the number of homeowner loan lenders.
At the beginning of the 1980s there were two secured loan lenders, and over the years other lenders sprang up and often disappeared just as suddenly. However over the years things settled down and there was more than a dozen lenders trading with success but the majority have ceased trading one after the other since the start of 2007.
An additional change is in the difference in income proof needed for self employed borrowers who now require accounts instead of the self certification of earnings as in the past.
Want to find out more about (http://www.championfinance.com) secured loans, then visit Champion Finance’s site on how to choose the best (http://www.championfinance.com) homeowner loans for you.
Title: Secured Loans / Homeowner Loans— The Difference And The Similarity Author: Avril White. Email: championfinance@aol.com Keywords: homeowner loan,homeownr loans,secured loans,remortgage,remortgages,debt consolidation,debt,debts Word Count: 334 Category: Finance:Loans
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