Remortgages And Secured Loans Are Slackening Off.
Most people have heard the names remortgages and secured loans without fully realizing what they are.
Remortgages and secured loans have much in common in that they are both types of home loans.
Secured loans and remortgages are bound together because of the fact that they are allied to property and the equity attached to that property.
Equity is the difference between the value of a property and the balance out standing on the mortgage.
On a property worth 280,000 with a mortgage of 170,00, the equity would be 110,000.
Based on the above example, a remortgage of 280000 would not be granted and neither would a secured loans of 110,000
This is the case due to the fact that 100% remortgages and secured loans no longer exist which is quite different from before the credit crisis.
The maximum secured loan at present is 80% for those in employment and 70% for those who are self employed. Some lenders even restrict the LTV to 75% for employed applicants.
Before the recession it was possible to get a secured loan of up to 100% of the property value and even use it like debt consolidation loans.
There were even secured loan lenders who were prepared to advance secured loans at 125% of equity.
In the past ,self employed could borrow at 90% LTV and self certification of income was allowed.
Self certs stopped and accounts were required but that has altered very recently, as there is now a homeowner loan lender advancing loans to self employed people who have been in business for a minimum of six months at a maximum LTV on this plan 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 secured loans criteria is still less lax than before it does look that things are once again moving in the right direction.
Looking to find the best deal on debt consolidation loans, then visit www.championfinance.com to find the best deal on remortgage for you.
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Tags: Financial, secured loan, secured loans, self employed loans, self employed loans UK
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