Do Not Forget About Remortgages And Secured Loans.

Do Not Forget About Remortgages And Secured Loans.

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Prior to the recession, remortgages and secured loans were the loan of choice for homeowners.

Of course at that time all loans were fairly readily available, and as most people knew this, the ready availablity was what actually caused the credit crunch in the first place, with many people obtaining loans that they did not have the earnings to pay back.

Every one then knew that finance of all sorts were there for the taking, and that homeowners could almost always obtain extra money when needed as there were dozens of secured loans and remortgage plans to suit all circumstances..

Secured loans were available at not only 90% of equity, but plans of 100% right up to 125% were available providing the applicant had a good credit rating, had a household income of 25,000, and had lived at their property for at least six months.

This was all very lax, as if a homeowner had a property worth 200,000 and a mortgage balance of 190,000 they could in theory obtain a secured loan of 60,000 which was the maximum loan on the plan. It was only those in employement who were eligible for these loans.

The self employed however could obtain secured loans of up to 100% even of they had no proof of income and simply self declared their income.

One secured lender limited the maximum loan to 75,000, while Future Mortgages were prepared to lend much more than this, and there was no limit on how much net profit the self employed declared.

Remortgages were also in the market at up to 125% LTV from a number of building societies, and for some time half of all mortgages were on a self cert basis.

The fact that these products were there was very obvious, as many lenders and secured loan and mortgage brokers advertised their products widely, both in the press and on television.. There were even these sort of adverts on our computer home page.

The recession put paid to all this reckless lending and to all these adverts, and this has lead to people thinking that it is impossible to obtain remortgages and secured loans, and as such they do not even consider applying for either of these loans.

This thinking is one of the reasons why the finance sector is still on it's knees, almost a year since the end of the recession. , The reality is that athough the maximum equity for rmortgages is only 90% from a few lenders and 85% maximum from most providers, and secured loans are 75% for the self employed and 85% for those in employment, they are easily obtained, and those in the industry can only hope that before long the public will become aware of this, before any more mortgage and secured loan brokers are forced out of business.

About the Author:
Champion Finance has been established since 1985. They provide whole of the market mortgages, remortgages and secured loans . Helpful, sympathetic debt advice, debt managemet, debt consolidation and all other debt solutions are also available.When looking for a secured loan, remortgage, etc. look no further than Champion Finance.



Article Originally Published On: http://www.articlesnatch.com


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