The Changes To Remortgages And Secured Loans

Secured loans and remortgages have a lot of identical aspects but also they have their differences .

One main feature that they have in common is that they are both secured on the equity available on a property.

Homeowner loans is another name for secured because only those who own their home can make application.

Equity is the difference between what a house is worth and the balance of the mortgage that is secured on it.

Up to the start of 2007 secured loans were available at 25% more than the value of the property and this was called the 125% equity plan.The maximum secured loan is now available up to 85% for employed borrowers and 75% for those who are self employed..

Remortgages of up to 100% were also available while The Northern Rock advanced remortgages of 25% more than the property value.

The maximum LTV for remortgages is now 90% which was a greater loan to value than that for secured loans until last week when a new lender introduced loans at 90% LTV, but the largest loan is only 15,000.

Prior to the credit crisis, self certifications of income were taken as income proof by remortgage and secured loan providers but that has all been abolished.

Self certs were abolished some time ago, but now however there is one secured loan lender accepting self certs while they are still not available to remortgage borrowers

Due to the fact that the self employed can no longer apply for a remortgage without concrete income proof these self employed loans are a good alternative when they require extra funds.

There are strict underwriting regarding to these self employed loans and for example they are only available at a maximum 60% loan to value, and the maximum loan is only 30,000. The applicant also needs three months bank statements to show that they are actually earning money.

These self employed loans are suitable as well as useful for people who cannot remortgage due to the fact that they cannot produce accounts.

Want to find out more about secured loans, then visit Champion Finance’s site on how to choose the best remortgage for you.

categories: secured loans,homeowner loans,refinancing,debt consolidation,mortgage,remortgage,finance