All things change and alter and never has this been more true than for the position regarding secured loans, mortgages and remortgages of late.
Secured loans or homeowner loans as they are also called have under gone a great number of different changes recently.
Homeowner loans which is another name for secured loans were offered by over twenty different secured loan lenders up to the beginning of 2007, but since then the number of loan providers has declined to four or five.
The number of secured loan products declined with the remaining homeowner loan lenders trying to cut back on the risk element when offering these home loans.
There used to be 125% LTV plans which enabled homeowners to borrow up to 125% of the value of their property.
The more lenient loan to value these days is 70% for those who are self employed and up to 80% for the employed.
Self declarations of income were all but done away with for the self employed which meant that it was no longer sufficient to write their own net profit on a bill head or similar and full accounts were needed, This meant that it was virtually impossible for the self employed who could not fully prove their earnings or who presented their own accounts to obtain a loan.
This was true of remortgages and mortgages with the elimination of self certs for these products, and this is never likely to alter as regards remortgages and mortgages
This is not the case as regards secured loans any longer with one lender now prepared to accept self certifications if the applicant has an LTV of 60% and provides three months bank statements.
The future of the remortgage and mortgage are now also looking brighter with more products appearing on the market after a few years of product withdrawal.
However for secured loans there is now hope for the self employed with the introduction by a lender of self certifications at 60% equity and the producing of three months bank statements. Hopefully before we know it remortgages, secured loans and mortgages will be as they used to be.
Want to find out more about secured loans then visit Champion Finance’s site on how to choose the best rates on remortgages for you.
