Remortgages and secured loans are both form of loans secured on the equity available on a residential property, and in spite of the fact that they have many things in common it is the secured loan we are considering here.
For those unfamiliar with the word equity, what equity is is what is left when the amount outstanding in a mortgage. This means that if the mortgage balance on any particular house or apartment is 130,000, and the worth of the property is 100,000, the equity is 30,000.
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.
This all seems rather fool hardy looking back, although this secured loan plan certainly suited many self employed applicants seeking the very useful secured loan product, and also very much the secured loan brokers who were before the credit crunch able to place many more secured loans with lenders before the credit crunch than at present.
Nowadays self employed applicants need further proof of their correct earnings. There are still however a couple of non status lenders who still accept this income proof at tight loan to values and at high interest rates.
It is equally frustrating for the many decent reputable secured loan brokers to be so frequently unable to obtain a secured loan for a customer which in the past would have been an application welcomed by the secured loan lenders as the main stay of their business.
For the past two years or so equity has been king as it were, although status also counts.
The most important feature for obtaining a secured loan has been the equity in the property, although a credit rating is also taken into consideration.
Secured loan brokers in particular will welcome this revival.
Looking to find the best deal on secured loans, then visit www.championfinance.com to find the best advice on secured loans for you.
