subject: Help Needed For Secured Loans,Mortgages And Remortgages [print this page] Help Needed For Secured Loans,Mortgages And Remortgages
The home loans of mortgages, remortgages and secured loans were very badly affected in an adverse way during the recession, and they still continue to struggle.This is far from surprising of course when it was this very sector that caused much of the actual credit crisis in the first place.The recession happened as a result of the fact that the bank and leaders of the lending institutions cared more about their own fat salaries and bonuses than they did about the firms employing them or their own clients.They happily advanced funds both in the residential and commercial sector to people who would never be in a position to pay back the funds.The underwriting for secured loans, remortgages and mortgages were very slack with self declarations of earnings prevalent for all three of these finance products.A self delaration of income means that the borrower certifies his own income without any back up proof, and lenders put no checks in place to ascertain that the earnings stated were anything like accurate.Mainly self certs applied to self employed applicants but one secured loan loan lender, Future Mortgages, even accepted self certs for employed people.Both underwriting for income and equity was slack. Equity is the difference between the outstanding balance and the value of the propertyOf course secured loans, mortgages and remortgages all depend on the collateral of the equity as they are secured homeowner loans.Before the recession mortgages, secured loans and remortgages at up to 100% and even up to 125% LTV abounded. The latter equity margin meant that these loans were available up to 25% more than the property was worth.This made all of these home loans very popular and they were many willing mortgage and remortgage lenders and borrowers.There were twenty five secured loan lenders offering plans to suit most homeowners.The recession lead to a number of high and lows in these loans with the number of secured loan lenders declining to five.Also self declarations for mortgages and remortgages were abolished and for secured loans they existed in a very limited fashion.Link Loans accept self employed people at a 60% LTV with a self declaration backed up by three months bank statements.However the changes and tightening up of criteia as regards income, equity, etc. have all lead to less applications for mortgages, remortgaqges and secured loans and unless a lender sees fit to relax their terms the finance industry are all set to continue to struggle.
