subject: Facts About Remortgages, Mortgages And Homeowner Loans [print this page] Remortgages, mortgages and secured loans all suffered a decline during the recession
Before the recession started, right up to the beginning of 2007, the remortgage, mortgage and secured loan industries were vibrant and business for both the lenders and brokers was brisk.
There were more than twenty secured loan lenders lending both directly to consumers and also through intermediaries.
All this started to change at the very start of the recession, with some of these lenders going out of business, not so much because of lack of willing borrowers, but partly due to the tightening up of criteria to such an extent that many who would have benefited from a secured loan for debt consolidation were no longer eligible.
Another reason why so many of these homeowner loan providers ceased trading was because they themselves could no longer find a backer to continue providing them with the necessary funding.
By the end of the recession there were only four homeowner loan lenders left.
The number of secured homeowner loan brokers also diminished mainly due to, not only a shortgage of customers, but because the homeowner lenders who still existed limited their intermediary panel to only a handful of major brokers leaving the smaller fry out in the cold.
There is now hopefully some light at the end of the gloomy secured loan tunnel with the re emergence of Link Loans to the market with their new backers RBS providing their funding in place of Barclays.
Paragon, the Midlands based secured loan lender, stopped advancing new loans but continuesd giving further advances.This yet again was caused by lack of adequate funding.
It is rumoured that Paragon is on course to return to grantng secured loans later this year.
Because of the fall in property values no one was prepared to apply for a mortgage to either buy their first home or to move house.
The greater stability appearing in the housing market is now encouraging people to buy property once more which is yet again a bright light of hope.
Remortgages suffered a similar fate as secured loans and mortgages had, and several mortgage and remortgage lenders ceased trading, and the number of remortgage and mortgage products available fell dramatically.
Now renewed hope is being witnessed in the remortgage sector with the number of remortgages available reaching the 2,000 mark, having fallen to about 1,400 during the credit crunch.
There are clear signs that homeowner loans, mortgages and remortgages are all showing signs of improvement.
