Is This The Start Of A Resurrection In Secured Loans And Homeowner Loans?
It is almost thirty years since the introduction of secured loans otherwise called homeowner loans and almost from the beginning they became very popular loans for homeowners.
As secured loans must be secured against an asset of a property only homeowners can apply.
For those unaquainted with the word equity what it in fact is is the differnce from the value of a property and the outstanding mortgage secured on that home.
Secured loans were first introduced about thirty years ago , and for a number of years there were only two main contenders who could even really be considered as substantial players in this particular loans sector, and these were Cedar Holdings and First National Bank, commonly referred to as simply FNB, although thirty years ago they were called First National Securities.
Over the years other such companies came and went, but eventually, about twelve years ago, the secured loans industry seemed to stabilise and several such firms appeared to be there for the long term such as EPF, GE, Paragon, Future and several others.
The industry was buoyant and these lenders thrived as homeowners were only too eager to take out a homeowner loan which they could use for almost any purpose from home improvements to paying for a holiday, a wedding, to buy a car or any other vehicle, etc.
Debt consolidation is best arranged by taking out a secured loan where all debts are rolled into one. all combines into one entity leaving only one repayment.
Over the years it appeared that the equity margins for secured loans became slacker and slacker and this financial product eventually became available not only at 100% loan to value but even up to 125% LTV which meant that the homeowner loan applicant could borrow up to 25% more than the value of his property.
The year after year of rising property values contributed to the success of the companies advancing these loans but when the credit crunch started and property prices fell many secured loan lenders fell with them.
Many homeowner loan lenders went out of business and lenders such as Nemo and Blackhorse made their criteria so strict that many could no longer apply for a secured loan.
A couple of months ago these two previously mentioned homeowner loan lenders slackened their equity margins from 70% LTV to 80% for clean staus employed applicants which heralded a slight improvement in the ailing market.
Kensingto and Zwift who had left the homeowner loan sector are back in business and some brokers have been granted an agency with them.
The most recent news concerning secured loans is that a new lender has entered the market and is prepared to advance this product up to 9% LTV and this is the best piece of news that prospective borrowers and secured loan brokers have heard for almost three years now.
As secured loans must be secured against an asset of a property only homeowners can apply.
For those unaquainted with the word equity what it in fact is is the differnce from the value of a property and the outstanding mortgage secured on that home.
Secured loans were first introduced about thirty years ago , and for a number of years there were only two main contenders who could even really be considered as substantial players in this particular loans sector, and these were Cedar Holdings and First National Bank, commonly referred to as simply FNB, although thirty years ago they were called First National Securities.
Over the years other such companies came and went, but eventually, about twelve years ago, the secured loans industry seemed to stabilise and several such firms appeared to be there for the long term such as EPF, GE, Paragon, Future and several others.
The industry was buoyant and these lenders thrived as homeowners were only too eager to take out a homeowner loan which they could use for almost any purpose from home improvements to paying for a holiday, a wedding, to buy a car or any other vehicle, etc.
Debt consolidation is best arranged by taking out a secured loan where all debts are rolled into one. all combines into one entity leaving only one repayment.
Over the years it appeared that the equity margins for secured loans became slacker and slacker and this financial product eventually became available not only at 100% loan to value but even up to 125% LTV which meant that the homeowner loan applicant could borrow up to 25% more than the value of his property.
The year after year of rising property values contributed to the success of the companies advancing these loans but when the credit crunch started and property prices fell many secured loan lenders fell with them.
Many homeowner loan lenders went out of business and lenders such as Nemo and Blackhorse made their criteria so strict that many could no longer apply for a secured loan.
A couple of months ago these two previously mentioned homeowner loan lenders slackened their equity margins from 70% LTV to 80% for clean staus employed applicants which heralded a slight improvement in the ailing market.
Kensingto and Zwift who had left the homeowner loan sector are back in business and some brokers have been granted an agency with them.
The most recent news concerning secured loans is that a new lender has entered the market and is prepared to advance this product up to 9% LTV and this is the best piece of news that prospective borrowers and secured loan brokers have heard for almost three years now.
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