subject: Further Improvements To Secured Loans, Mortgages And Remortgages [print this page] Remortgages, secured loans and mortgages have been in a low trough in the last year or so, more than at any other time.
The main thing needed for a securd loan, mortgage or remortgage is enough equity.
As secured loans, mortgages and remortgages are all types of secured loans, equity is extremely important.
Bad credit loans were readily available at 75% LTV.
As such, at that period, a vast majority of homeowners were eligible for secured loans.
Bad credit secured loans had much higher rates of interest.
For example if a property is worth 200,000 and the mortgage balance stands at 190,000, the equity is only 10,000. Before the recession 125% equity plans were available and based on this example, a homeowner could borrow a secured loan of up to 60,000.
The Northern Rock even had a 125% mortgage and remortgage product.
125% LTV plans were done away with at the start of the recession.
Initially at the start of the recession, most secured loan lenders reduced the accepted LTV's to between 60% to 65% for the self employed, and to a maximum of 70% for those in employment.
Gradually this was slackened a little to 70% for self employed applicants and to 80% for those in employment.
Inspite of things being a little better, many homeowners still could not obtain any of these home loans.
Self employed homeowners were worse affected still with the abolition of self certifications of net profit, where they declared their own earnings on a letter head or something of the kind.
Some homeowner loan providers no longer advanced their product to the self employed and one such lender was Nemo Loans.
Things are looking up with such matters as the reintroduction by Nemo of secured loans for the self employed at the LTV of 75% maximum.
It is still a far cry from their plan, a few years ago, when they were prepared to grant self employed homeowner loans at up to 100% of equity with a self cert, but it is still a step in the right direction.
At the same time, there is further good news on the secured loans front with the announcement, again from Nemo, that as of next week their LTV for employed borrowers is being increased by 5% to 85%
With the continued increase in property prices, remortgages and mortgages are also facing a brighter future .
