Although remortgages and secured loans have a great deal in common, as they are both are in fact secured homeowner loans which are based on whatever equity is available on a property.
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-0,000, 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.
Secured loans were granted as if they were going out of fashion , and although sometimes the underwriting criteria was perhaps a little slack at times, these secured loans were a great useful product enabling secured loan applicants, both employed and employed to obtain a loan to use for a number of purposes.
Nowadays self declarations have all but ceased and back up proof in the form of an accountant's letter or even full accounts are now required, leading to many would be secured loan applicants being refused the secured loan they seek and which they can comfortably afford to pay back.
Last month Black Horse changed their maximum LTV to 80% compared to the previous 70%, some hope was felt throughout the ailing secured loan industry.
With Black Horse, the secured loan lender increasing their LTV for secured loans from 70% to 80% some hope of a resurrection is spreading in the secured loans sector.
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.
Now with the Cardiff based secured loan lender, following the example of Black Horse, and increasing their maximum LTV from 70% to 80% there is yet a little more hope of the secured loan product seeing the recovery it so much needs. - 29904
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-0,000, 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.
Secured loans were granted as if they were going out of fashion , and although sometimes the underwriting criteria was perhaps a little slack at times, these secured loans were a great useful product enabling secured loan applicants, both employed and employed to obtain a loan to use for a number of purposes.
Nowadays self declarations have all but ceased and back up proof in the form of an accountant's letter or even full accounts are now required, leading to many would be secured loan applicants being refused the secured loan they seek and which they can comfortably afford to pay back.
Last month Black Horse changed their maximum LTV to 80% compared to the previous 70%, some hope was felt throughout the ailing secured loan industry.
With Black Horse, the secured loan lender increasing their LTV for secured loans from 70% to 80% some hope of a resurrection is spreading in the secured loans sector.
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.
Now with the Cardiff based secured loan lender, following the example of Black Horse, and increasing their maximum LTV from 70% to 80% there is yet a little more hope of the secured loan product seeing the recovery it so much needs. - 29904
No comments:
Post a Comment