Debt Consolidation For All By Secured Loans / Homeowner Loans.

Until the start of 2007 secured loans, also known as homeowner loans were the loans of choice for homeowners.

Only homeowners can apply for homeowner loans and hence the name.

The asset in question is the security of the secured loan applicant's property.

Secured loans started about thirty years ago when the only two lenders of note were First National Bank and Cedar Holdings.

Over the years that followed other homeowner loan lenders entered the market mnany of whom withdrew just as suddenly as they had arrived.

During the nineteen ninties, the secured homeowner loan market stabilised and there was a solid steady number of lenders offering these ever so popular loans.

Companies such as FNB EPF, Paragon, Future Mortgages, Nemo, Blemain, First Plus, etc. all flourished and the demand for their products was brisk.

They all had different under writing criteria, but as there were so many different secured loan plans on offer from all these lenders, the vast majority of homeowners were eligible for a homeowner loan.

There were 125% equity plans,which meant that the borrower could obtain a loan of over 25% of the value of the property.

It was possible for the self employed to declare their own net profit without producing any additional proof.

Some lenders even accepted unlimited adverse credit in the shape of mortgage arrears, late loan payments, defaults and CCJS.

In the course of the last three years many secured loan lenders ceased trading and the under writing of those left became much more strict.

The self employed had now to present two years accounts instead of self declaring their earnings.

This forced many who could have made good use of a secured loan, for debt consolidaion in particular, were denied a loan and were often forced to seek debt advice from one of the many hard pressed free debt advice agencies.

Link Loans were one of the many secured loan lenders who exited the market during the recession, but only last week they reappeared due to having obtained funding from RBS.

The are accepting those who have only been self employed for six months and the proof of self employment required is a business invoice accompanied by three months bank statements.

Link Loans are even prepared to accept some bad credit and the LTV is 70% for self employed and 75% for employed applicants.

This should mean that many who have wanted to apply for a secured loan for up to three years now can apply again.

These loans will now mean that many who have been seeking debt advice will now be able to obtain the debt consolidtion loan that the debt advice advisor recommended.

by: Liz Moir

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