Secured loans and remortgages are names known to many people without them really taking on board what these terms really mean
Secured loans, are also known as homeowner loans, and remortgages are both sorts of the loans in the home loan group.
The main feature that they have in common is that they are both connected to property, and in fact they are both tied in some way to the equity in a property.
What equity in fact is, is the figure left when the mortgage balance is taken from the value of the property
On a property worth 380,000 with a mortgage of 190,00, the equity would be 190,000.
Based on the above example, a remortgage of 380000 would not be granted and neither would a secured loans of 190,000
Now, unlike before the recession, secured loans or remortgages at up to and even over 100% are not available.
Now a days secured loans are only advanced at up to a maximum of 80% for those in employment and 10% less for the self employed.
Before the recession homeowner loans at 100% LTV were available.
Secured loan lenders even existed who were willing to grant secured loans at 125% of equity.
Previously ,self employed applicants could borrow up to 90% LTV and they could even supply self certification of income.
Over the recent past self certs ceased and accounts were needed but that has changed a bit recently, as there is now a secured loan lender granting loans to self employed napplicants who have been in business for the short period of onlyc six months at a maximum LTV of 60%.
They are accepted for self employed trading for at least six months, but the LTV is only 60% maximum and three months bank statements are required.
Therefore although criteria is still more strict than before for remortgages and secured loans, matters look all set to improve.
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