Homeowner loans are types of loans for which tenants are not eligible and only people who own their own home can apply.
Until the recession some homeowners opted for unsecured loans, and these loans were often granted as the lender had the security to some extent because if the borrower fell badly behind in his repayments, the loan lender was able to take out a form of secured decree known as an inhibition.
An inhibition is in reality a form of decree secured against the property, and it is registered at the Land Registry. This means that the loan lender will eventually get his money back as the homeowner will not be able to sell the house until the inhibition is paid off.
Now with the shortage of funding available it is almost impossible even for a homeowner to obtain an unsecured loan, unless he is absolutlety blue chip. That means someone who has lived at the same address for a number of years and is on a good salary in a job that he has been in for several years.
The only real hope of a homeowner obtaining a loan at present is by applying for a secured loan. As the name secured suggests a secured homeowner loan is secured by an asset, and in this case the asset is the equity on the property.
Things before the recession and during the recession are very different There used to be 125% equity plans which allowed loans to be granted of 25% more than the property was worth. First Plus was the secured loan lender who introduced this plan.These plans were usually available up to a maximum loan of 60,000.
This has all changed and the maximum LTV for employed applicants is 80% and for self employed applicants the maximum LTV is 70%.
Homeowner loans were too readily available before the present credit crunch, and two odd years later these secured homeownner loans are too thin on the ground, and many homeowners who have excellent credit ratings are being deprived of the loans they need, and which they can comfortably afford to pay back.
The ideal scenario would be for a new homeowner loan lender to enter the market place who would grant secured loans of up to 90% LTV, and help revive this most ailing of industries. - 29904
Until the recession some homeowners opted for unsecured loans, and these loans were often granted as the lender had the security to some extent because if the borrower fell badly behind in his repayments, the loan lender was able to take out a form of secured decree known as an inhibition.
An inhibition is in reality a form of decree secured against the property, and it is registered at the Land Registry. This means that the loan lender will eventually get his money back as the homeowner will not be able to sell the house until the inhibition is paid off.
Now with the shortage of funding available it is almost impossible even for a homeowner to obtain an unsecured loan, unless he is absolutlety blue chip. That means someone who has lived at the same address for a number of years and is on a good salary in a job that he has been in for several years.
The only real hope of a homeowner obtaining a loan at present is by applying for a secured loan. As the name secured suggests a secured homeowner loan is secured by an asset, and in this case the asset is the equity on the property.
Things before the recession and during the recession are very different There used to be 125% equity plans which allowed loans to be granted of 25% more than the property was worth. First Plus was the secured loan lender who introduced this plan.These plans were usually available up to a maximum loan of 60,000.
This has all changed and the maximum LTV for employed applicants is 80% and for self employed applicants the maximum LTV is 70%.
Homeowner loans were too readily available before the present credit crunch, and two odd years later these secured homeownner loans are too thin on the ground, and many homeowners who have excellent credit ratings are being deprived of the loans they need, and which they can comfortably afford to pay back.
The ideal scenario would be for a new homeowner loan lender to enter the market place who would grant secured loans of up to 90% LTV, and help revive this most ailing of industries. - 29904
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