One of the most aspects about secured loans, otherwise known as homeowner loans, is that they only available to those who own their own property on which there is is a mortgage secured.
Non homeowners cannot apply as these loans are secured finance, and the collateral is the equity that is on a property. Equity is the difference between the value of a house , and the balance of the mortgage. If for example a balance of mortgages is 190,000 and the property has a worth of 330,000 the equity in this case is 140,000.
Pre recession secured loans were available at loan to values up to 100% , as well as 90% and 95% LTV loans. Secured loans at to the amount of 100,000 were available. As well as earnings and credit rating which were also important.
There were even secured loan lenders who willing to advance secured loans at 125% loan to value, which meant that secured loans could be granted at up to 25% more than the property was worth. Generally most providers restricted the largest homeowner loans on the good old 125% plan to 60,000 at the most.
There are no longer such reckless loan to values, and the maximum LTV is 85% for employed secured loan applicants, and they are limited to 75% for self employed borrowers.
The maximum secured loan values these days is between 50,000 to 100,000 depending on secured loan lenders. Prior the economic chaos loans of as much as 250,000 were available provided of course the secured loan applicant had sufficient equity for the security
Secured loans are all purpose kinds of loans that can buy a car, a motor home, caravan, etc. Whenever secured loans are used to buy a car for example it means that it can be bought privately at an auction allowing you to save money compared to buying the same car from a dealer, and it also means that no deposit is required. Car loans are generally only available up to about 70% of the purchase price and this can be lots of money. If you pay via secured loans the need for a deposit disappears.
Secured loans are a superb means of sorting out debt consolidation which unites all debts on credit cards, personal loans, etc. enabling you to save while at the same time your financial life easier to manage.
These loans can even be used as a way to purchase a holiday home whether you want one in the UK, Europe or even further afield.
The person reading this info about secured loans will hopefully find it useful, but if other advice is required it is wise to contact a secured loan broker.
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