secured loans

It is only homeowners who are can make application for secured loans or homeowner loans if you prefer.

Homeowners are the only people who can apply for them as they need to be secured against some some of collateral which is a property. What equity is is the difference between what the property value and the mortgage. To give an example of what we mean is that if a property has a value of 400,000, and the mortgage stands at 150,00, the equity is 250,000 in this occasions

Before the credit crash loan to values were there up to 100% of the property value and secured loans of as much as 100,000 were available subject to other criteria such as a secured loan borrower’s credit rating, income and so on.

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.

Before secured loans were available up to 250,000. With others the largest available secured loan was 100,000. These days secured loans are granted up to 50,000 with some lenders and others are prepared grant secured loans up to 100,000.

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 great as debt consolidation loans which offer great savings as they lump all outstanding bits of credit into one, and make dealing with too much debt a thing of the past..

Secured loans are also a way of purchasing a second home at home or away and in this way you can purchase a second home without a deposit.

This is only a little about secured loans, and everybody can learn more a secured loan broker.