| Some Facts About Homeowner Loans / Secured Loans. |
| Articles - Mortgage |
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Homeowner loans otherwise known as secured loans are of course only available to homeowners.
Homeowner loans otherwise known as secured loans are of course only available to homeowners. Tenants are not eligible as these homeowner loans must be secured by the equity on a property. Equity is the difference between the mortgage balance and the value of the property. To give an example if a property is worth 230,000 and the mortgage balance is 120,000 the available equity would be 110,000. Secured loans used to be available at high loan to values up to 100% , and there were also 90% and 95% LTV plans.Secured loans of up to 100,000 were available. In addition income and credit rating were taken into aaccount. Certain secured loan lenders including Paragon, EPF and First Plus even gave secured loans at 25% more than the property was worth. This was acceptable when house prices were rising, but when they started to fall these secured homeowner loan lenders were in serious trouble. Now the equity margin is restricted to a maximum of 70% for self employed homeowner loan borrowers and 80% for employed applicants. Secured homeowner loans used to be up to a maximum loan value of 250,000. With others the maximum available homeowner loan was 100,000. Secured loans are available now of up to 50,000 with some homeowner loan lenders, and some are prepared to lend up to 100,000. Secured homeowner loans can be used for almost any purpose whether it is to buy a car, a motorhome, caravan, etc. If a secured loan is used to buy such a thing as a car it means that it can be bought privately at an auction or from a private person saving money compared to buying the same car from a garage, and it also does away with needing a deposit. Currently car loans are normally only available up to about 70% of the purchase price and this can be thousands of pounds needed as a deposit. Using a homeowner loan does away with the requirement of having a deposit. You can use a homeowner loan as a debt consolidation loan which saves loads of money as it rolls all outstanding debts into one, and makes struggling with numerous debts a thing of the past. If a homeowner has always had a dream of owning a second home at home or away, this dream can become a reality with a secured loan which can fund 100% of the second home purchase. These are only a few facts about homeowner loans to hopefully wet your appetite for this excellent low interest secured loan product. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Joomla 1.5 Templates by JoomlaShine.com
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