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.
In the good old days before the recession, and how far away it all seems now, secured loans were available with all secured lenders at easily up to 95% LTV, ie. loan to value, and this applied to all secured loan lenders from Sterling, FNB. G.E., Future Mortgages, and so on and so forth, and this applied throughout the UK.
There were even 100% LTV secured loans available to self employed people and they could even declare their own income on bill head with out any back up proof of their actual earnings. This loan was available up to a secured loan sum of 75,000.
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 declarations have all but ceased and back up proof in the form of an accountant's letter or even full accounts are now required, leading to many would be secured loan applicants being refused the secured loan they seek and which they can comfortably afford to pay back.
The secured loans industry has been struggling and brokers have been frustrated at being unable to place secured loan applications most commonly because of equity.
From the beginning of next month, ie. November 2009 the Cardiff based secured loan lender are accepting secured loan applications at 80% LTV compared to the previous maximum of 70%. This hopefully all bodes well for the secured loan product.
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.
Secured loan brokers in particular will welcome this revival. - 29971
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.
In the good old days before the recession, and how far away it all seems now, secured loans were available with all secured lenders at easily up to 95% LTV, ie. loan to value, and this applied to all secured loan lenders from Sterling, FNB. G.E., Future Mortgages, and so on and so forth, and this applied throughout the UK.
There were even 100% LTV secured loans available to self employed people and they could even declare their own income on bill head with out any back up proof of their actual earnings. This loan was available up to a secured loan sum of 75,000.
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 declarations have all but ceased and back up proof in the form of an accountant's letter or even full accounts are now required, leading to many would be secured loan applicants being refused the secured loan they seek and which they can comfortably afford to pay back.
The secured loans industry has been struggling and brokers have been frustrated at being unable to place secured loan applications most commonly because of equity.
From the beginning of next month, ie. November 2009 the Cardiff based secured loan lender are accepting secured loan applications at 80% LTV compared to the previous maximum of 70%. This hopefully all bodes well for the secured loan product.
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.
Secured loan brokers in particular will welcome this revival. - 29971
