In spite of the fact that remortgages and secured loans are similar sorts of homeowner loans, they are also different in some ways.
The most distinct feature that these homeowner loans have in common, is the fact that they both need the equity of the applicant’s 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..
The Northern Rock before it’s complete collapse used to grant both mortgages and remortgages at up to 125% LTV and at that time remortgages and mortgages of 100% were available from most lenders.
The underwriting is very different at presnt but the LTV for remortgages is less strict than that for secured loans as now some mortgage lenders are offering mortgages and remortgages up to 90% LTV.
Before the credit crunch the self employed were able to declare their own net profit when making application for both remortgages and secured loans but that no longer exists.
It has been quite a long time now since lenders accepted self certs for either secured loans or remortgages but this has changed a bit as far as secured loans are concerned.
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.
Learn more about secured loans Stop by Champion Finance’s site where you can find out all about remortgage for you.
categories: secured loans,homeowner loans,refinancing,debt consolidation,mortgage,remortgage,finance
