subject: Great News For The Secured Loans Market [print this page] During the credit crunch, the once so buoyant secured loans market fell ,with less people eligible for a secured loan.
The good news of the 85% plan really is good news for the market, as before the credit crunch, there were lenders lending to 125%, but this was reduced to 80%. With house prices falling, this was bad news for the market.
With house prices falling, and with equity margins tightening, there were a lot less homeowners eligible for a secured loans
Equity is built up when property values increases, and becomes greaater than the outstanding mortgage balance.
The new 85% plan will prove to be very popular, and more homeowners, when looking to raise finance will look at the secured loans market as a way to raise finance.
The secured loans market in the last couple of months has seen improvements, and there has been new lenders coming in,although there is only the one lender going up to 85%,but hopefully there will be a lot of interest in these loans.
Secured loans can be used for a number of different reasons, although it is a very common way for homeowners to raise finance in the way of a secured loan for debt consolidation. Secured loans are ideal for debt consolidation finance, and with the rates being low, secured loans should always be considered.
Homeowners that have adverse credit will have to have more equity in their property. Secured loan lenders are available and eager to lend, but they will want to see more equity than for those who have a good credit score. With equity margins increasing, and property values increasing this will be good news for homeowners with adverse credit as they will be able to look at a secured loan to sort their finances out.
