Homeowner loans as the name suggests are a form of loan for which only homeowners are eligible to apply.
Homeowners can apply for either an unsecured or a secured homeowner loan. Before the advent of the credit crunch it was relatively easy for a homeowner to obtain an unsecured loan, because if the borrower defaulted on payments the loan lender could place an inhibition on the property.
An inhibition is recorded at the Land Registery just as the mortgage or any secured loan is.If the homeowner wants to sell his house anytime in the future he will have to clear off the inhibition, and the unsecured loan lender will get his money back.
As loan funding of any kind is not very available in the current economic climate unsecured loans are almost a thing of the past unless you are someone who hardly requires a loan in the first place. You would have to be settled as regards your job and your years at the same address to have any chance at all of being considered for an unsecured loan.
This means that the best and in fact probably the only way for a homeowner to obtain the loan required nowadays is by the means of a secured homeowner loan. The secured homeowner loan is secured against the equity of a property.
Before the crunch 125% equity loans were available which meant that homeowners with little or in fact no equity in their property could obtain fairly large secured homeowner loans. This was rather fool hardy, and when house prices started to follow the situation became dire for the secured loan lenders concerned.
The situation regarding equity is very different now, and the 125% equity secured homeowner loan is a thing of the past and equity margins are now 70% for self employed borrowers and 80% for the employed.
Homeowner loans have really gone from one extreme to the other. Secured loans are now too difficult to obtain whereas before the recession the underwriting criteria was often too lax.
What is required is for a new secured homeowner loan lender to enter the market who is prepared to lend homeowners with good credit ratings secured loans of up to 90% LTV or the end of these excellent homeowner loans could be near. - 29970
Homeowners can apply for either an unsecured or a secured homeowner loan. Before the advent of the credit crunch it was relatively easy for a homeowner to obtain an unsecured loan, because if the borrower defaulted on payments the loan lender could place an inhibition on the property.
An inhibition is recorded at the Land Registery just as the mortgage or any secured loan is.If the homeowner wants to sell his house anytime in the future he will have to clear off the inhibition, and the unsecured loan lender will get his money back.
As loan funding of any kind is not very available in the current economic climate unsecured loans are almost a thing of the past unless you are someone who hardly requires a loan in the first place. You would have to be settled as regards your job and your years at the same address to have any chance at all of being considered for an unsecured loan.
This means that the best and in fact probably the only way for a homeowner to obtain the loan required nowadays is by the means of a secured homeowner loan. The secured homeowner loan is secured against the equity of a property.
Before the crunch 125% equity loans were available which meant that homeowners with little or in fact no equity in their property could obtain fairly large secured homeowner loans. This was rather fool hardy, and when house prices started to follow the situation became dire for the secured loan lenders concerned.
The situation regarding equity is very different now, and the 125% equity secured homeowner loan is a thing of the past and equity margins are now 70% for self employed borrowers and 80% for the employed.
Homeowner loans have really gone from one extreme to the other. Secured loans are now too difficult to obtain whereas before the recession the underwriting criteria was often too lax.
What is required is for a new secured homeowner loan lender to enter the market who is prepared to lend homeowners with good credit ratings secured loans of up to 90% LTV or the end of these excellent homeowner loans could be near. - 29970
