Things Are Looking Brighter For Secured Loans And Self Employed Loan.

Secured loans, which are also known as homeowner loans

, were a very popular way for property owners to borrow.

The start of the secured loan was about thirty years ago at which time the only lenders of any note were FNB and Cedar Holdings.

Over the years, other loan providers entered the market , some to stay and others to exit almost as quickly as they had sprang up.

Eventually, the secured loan market stabilised and there was a steady number of lenders providing this financial product. There were over twenty homeowner loan lenders doing brisk business for a number of years.

Homeowners were only too happy to apply for these loans which had low interest rates and could be used for a vast variety of purposes

Secured loans are secured on the equity of the property, and originally homeowner loans were only available up to a maximum of 90%.

As property values soared so did the equity, and before long several lenders were not only advancing 100% LTV loans but loans at 125%.

These 125% secured loans were available from First Plus, Paragon and EPF. The former two lenders are no longer trading, while the latter is ticking over, granting further advances to existing customers.

In the past there were more than twenty secured loan lenders, but this decreased to less than a handful.

Those who remained in business, not only restricted the equity margin, but also their underwriting in general, and therefore the number of homeowners eligible for secured loans fell, as property prices on which these loans depend, went down.

The self employed, who before the recession could obtain a homeowner loan at up to 90% on a self declaration of earnings, were affected to a greater extent than the employed.

The loan to value was set at a maximum of 70% and full accounts were now required.

It all looked very bleak, that is until now, when fresh hope has appeared.

Link Loans, who withdrew from the homeowner loan market due to their inability to obtain funds from their backers, Barclays Bank, are back in business and funded now by RBS.

Secured loans are available at 70% for self employed people and 80% for employed applicants.

Self certifications are now available from Link Loans but the borrower has to provide proof of a certain level of earnings by providing bank statements for a three month period.

Further improvement for the secured loan sector is now being witnessed by Link Loans reducing their interest rates in a statement announced by them today.

by: Liz Moir

POST COMMENT

Reward Yourself with a Proper Pint from Greene King Get Your Free Credit Score Report On-line And Save Yourself A Real Nightmare Guide To The Most Popular Self Defense Products Kubotan: A Self-defense Weapon For All Martial Arts Styles Non-combative Self-defense Journaling: An Exercise In Self-respect 4 Reasons Why Kicking An Attacker In The Groin Is A Bad Idea During A Self-defense Situation In A Self-defense Situation Control The Distance And You Control The Fight In A Self-defense Situation Fight Smarter, Not Harder The Self-publisher Book Cover Design Survival Guide Get More Exercise Tips For Beginners Golf Beginner Guide Loans For The Self Employed: Strong Money Help For Entrepreneurs