Whenever someone wants to buy a car, carry out home improvements , etc. unless they are well to do financially, they will need to borrow to buy the product, that means that they will need to apply for a loan of some kind..
Loans divide into two main kinds and these are unsecured loans, which are personal loans, and the secured sort of loan.
Unsecured loans do not need security and as such are in theory available to everybody, and these people include those in private or council or housing authority rented property, as well as to people living with relatives and naturally they are also available to homeowners.
Tenants can only get unsecured or personal loans, as secured loans are secured against property, and because tenants only rent their home, they do not own a property on which to secure any form of loan.
Secured loans are also known as homeowner loans. for this very reason.
The first major feature for secured loans is that the applicant must be a homeowner, and the second feature is to have equity in the property.
Equity is the difference between a mortgage balance and the properties value.
An example of equity, is that on a property valued at 240,000 and with a mortgage of the same value there would be no equity on which to secure a loan.
Recently equity was raised to 75% for self employed people and 85% for employed borrowers by one well known secured loan lender. Now it is even simpler to get a low interest loan for almost any purpose including using them as consolidation loans.
There are no longer any 100% plans available and as stated the maximum loan to value for those is 85% and 75% for the employed and self employed respectively.
It is a few months now since 75% LTV homeowner loans were brought back for the self employed with 10% higher loan to value for the employed.
As such the two most important aspects for obtaining these secured loans is to be a homeowner and to have sufficient equity, which can be used for almost any purpose including debt consolidation.
Want to find out more about remortgages, then visit Champion Finance’s site on how to choose the best remortgage for your needs.
categories: secured loan,secured loans,homeowner loan,homeowner loans,debt consolidation,debt consolidtion loans
