Secured Loans In The Shape Of Self Employed Loans.
For three years now the secured loans market has been in a constant state of fluctuation with constant ups and down but in reality more ups than downs.
Secured homeowner loans, since their inception almost thirty years ago, were always considered to be one of the first choices for homeowners who wanted to borrow for what ever purpose.
Secured loans had good interest rates, as being secured, the lender felt confident that the loan would always be repaid before almost any other loan, mortgage apart.
As well as being cheap, the fact that secured loans can be used for just about anything was another factor in their popularity.
A common use secured loans was for debt consolidation which means the combining of all monthly financial outgoings into the one lower debt consolidation payment each month.
Up until three years ago it was possible for a homeowner with almost no equity in his property tp apply for homeowner loans with the availability of loans at 25% more than the value of the property.
While the self employed were never eligible for 125% secured loans, they could obtain a loan at 90% LTV and use a self certification of net profit in the process.
125% plans are only feasible when property prices are rising rapidly, but when they fall it becomes impossible.
Secured loan lenders also did away with accepting homeowner loans for self employed applicants without full accounts, as self certifications were no longer acceptable. Many self employed people simply could no longer obtain a loan.
Secured loan providers soon closed their doors and they have remained so to this day.
One homeowner loan lender is again granting secured loans, as they have received funding from RBS. This is Link Loans who are now granting loans to self employed homeowners at a maximum equity of 60%. The borrower must also provide the last three months bank statements.
Secured loans are hopefully once again moving in the right direction with the advent of these self employed loans.
Learn more about debt consolidation. Stop by Champion Finance’s site where you can find out all about remortgages for you.
