The financial product of homeowner loans, which are also called secured loans, have declined rapidly in the course of the past three years or so.
Before the credit crisis, secured loans were in great demand, and were one of the most popular loans among homeowners requiring to raise extra funds.
One reason behind their great popularity was that they could be used for almost any purpose at all, and they were advanced without the homeowner loans lender requiring definitive proof as to the use of the loan.
Homeowners used to use these loans to pay for holidays, weddings, to buy a car or a caravan and even a motor home.
In the past, secured homeowner loans were good as debt consolidation loans which combined all debt into the one, just as a remortgage can.
What is always needed for secured loans is equity which is the balance that is left when the mortgage balance is deducted from the property value.
In the past, secured loans were available to those who in reality had no equity with the availability of 125% loans which allowed advnces of up to 25% of the property value.
This all stopped, and until now the best LTV is 70% for the self employed and 80% for those in employment,
The self employed were even more adversely affected by this than were the employed,, as in addition to being more equity restricted, self declarations of income were also abolished.
Link Loans hve now brought in self employed loans plan for those trading for a minimum of six months who have good equity of 60% maximum who can provide three months bank statements.
Further improvement has been announced today by Nemo Loans who are increasing the loan to value of secured loans from 80% to 85% from next week.
In addition to this, Nemo are going to be granting loans to the self employed at 75% loan to value.
Looking to find the best deal on consolidation loans, then visit www.championfinance.com to find the best deals on remortgages for you.
