Secured loans and remortgages have many similarities starting with the fact that they are both types of home loans secured on the equity of a property, but it is the secured loan we are discussing at the moment.
What is meant by equity is really the gap between the balance of a mortgage and the value of the property on which the mortgage is secured.This means that the equity on a property would be 100,000, if the value of the property is 230,000 and the mortgage secured on the property is 130,000.
Before the credit crunch secured loans were available very commonly at 90% to 95%, and most secured loan lenders granted secured loans at these equity margins.
Self employed applicants were even allowed secured loans of up to 100% of the property value, and simply declared their own net profit as so called proof of income. Loans on this plan were available from 5,000 to a maximum of 75,000. This was a fairly large value secured loan .
Perhaps these secured loans were too readily available when we think about it now, but although it all does seem rather reckless these self employed secured loan applicants were good business for the secured loan brokers as well as the lenders, and in general they did not default in payment.
Nowadays self employed applicants need further proof of their correct earnings. There are still however a couple of non status lenders who still accept this income proof at tight loan to values and at high interest rates.
Last month Black Horse changed their maximum LTV to 80% compared to the previous 70%, some hope was felt throughout the ailing secured loan industry.
For the past two years or so equity has been king as it were, although status also counts.
With the further announcement this week that the secured loan lender from Cardiff, announcing an increase in their LTV from 70% to 80% it is to be hoped that the secured loan industry will experience a much needed revival.
Now with the Cardiff based secured loan lender, following the example of Black Horse, and increasing their maximum LTV from 70% to 80% there is yet a little more hope of the secured loan product seeing the recovery it so much needs. - 29970
What is meant by equity is really the gap between the balance of a mortgage and the value of the property on which the mortgage is secured.This means that the equity on a property would be 100,000, if the value of the property is 230,000 and the mortgage secured on the property is 130,000.
Before the credit crunch secured loans were available very commonly at 90% to 95%, and most secured loan lenders granted secured loans at these equity margins.
Self employed applicants were even allowed secured loans of up to 100% of the property value, and simply declared their own net profit as so called proof of income. Loans on this plan were available from 5,000 to a maximum of 75,000. This was a fairly large value secured loan .
Perhaps these secured loans were too readily available when we think about it now, but although it all does seem rather reckless these self employed secured loan applicants were good business for the secured loan brokers as well as the lenders, and in general they did not default in payment.
Nowadays self employed applicants need further proof of their correct earnings. There are still however a couple of non status lenders who still accept this income proof at tight loan to values and at high interest rates.
Last month Black Horse changed their maximum LTV to 80% compared to the previous 70%, some hope was felt throughout the ailing secured loan industry.
For the past two years or so equity has been king as it were, although status also counts.
With the further announcement this week that the secured loan lender from Cardiff, announcing an increase in their LTV from 70% to 80% it is to be hoped that the secured loan industry will experience a much needed revival.
Now with the Cardiff based secured loan lender, following the example of Black Horse, and increasing their maximum LTV from 70% to 80% there is yet a little more hope of the secured loan product seeing the recovery it so much needs. - 29970
