Interesting Facts About Homeowner Loans Otherwise Know As Secured Loans.
Tenants cannot apply for secured loans which are also known as homeowner loans.
Tenants are not eligible as these homeowner loans must be secured by the equity on a property. Equity is the difference between the mortgage balance and the value of the property. To give an example if a property is worth 230,000 and the mortgage balance is 120,000 the available equity would be 110,000.
Secured loans used to be available at high loan to values up to 100% , and there were also 90% and 95% LTV plans.Secured loans of up to 100,000 were available. In addition income and credit rating were taken into aaccount.
Some homeowner loan lenders even advanced secured loans at 125% LTV, meaning that secured loans were available at up to 25% more than the value of the property. However most lenders limited the maximum loan on this plan to a maximum of 60,000.
Now the equity margin is restricted to a maximum of 70% for self employed homeowner loan borrowers and 80% for employed applicants.
Before the credit crunch,providing of course there was sufficient equity,secured loans were available up to a maximum of 250,000, whereas now some secured loan lenders are only prepared to grant up to a maximum loan value of 50,000 while other homeowner loan lenders grant secured loans up to 100,000
Homeowner secured loans have a multitude of uses, including buying vehicles such as boats, vans, caravans , cars. In fact using a homeowner loan to buy a car gives you ready cash in hand to buy the car privately instead of from a dealer. The car will be cheaper and you will not even need a deposit.
A homeowner loan is an excellent way to arrange debt consolidation which combines all your outgoings on credit cards, personal loans, etc. saving you a fortune and making your financial life easier to manage.
If a homeowner has always had a dream of owning a second home at home or away, this dream can become a reality with a secured loan which can fund 100% of the second home purchase.
These are only a few facts about homeowner loans to hopefully wet your appetite for this excellent low interest secured loan product.
Looking to find the best deal on secured loans, then visit www.championfinance.com to find the best advice on homeowner loans for you.
Tags: debt consolidation loans, debt loans, homeowner loans, loan, loans, mortgage, real estate, remortgage, secured loans
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