Interesting Facts About Homeowner Loans Otherwise Know As Secured Loans.
November 13th, 2009
Homeowner loans otherwise known as secured loans are of course only available to homeowners.
Homeowners are the only people who are eligible for these homeowner loans as they require to be secured against an asset which in this case is a property. What equity is is the differerence between what a house is worth and the mortgage secured on it. To give an example of what equity is that if a property is worth 290,000, and the mortgage is 100,00, the equity is’0,000.
Loan to value plans before the recession were available up to 100%, and secured loans of up to 100,000 were readily available subject to other criteria relating to a homeowner loan applicant’s status, income, etc.
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.
There are no longer such slack loan to values, and the maximum is 80% for employed prospective secured homeowner loan applicants, and reduced to 70% for self employed people.
Secured homeowner loans used to be up to a maximum loan value of 250,000. With others the maximum available homeowner loan was 100,000. Secured loans are available now of up to 50,000 with some homeowner loan lenders, and some are prepared to lend up to 100,000.
Secured homeowner loans can be used for almost any purpose whether it is to buy a car, a motorhome, caravan, etc. If a secured loan is used to buy such a thing as a car it means that it can be bought privately at an auction or from a private person saving money compared to buying the same car from a garage, and it also does away with needing a deposit. Currently car loans are normally only available up to about 70% of the purchase price and this can be thousands of pounds needed as a deposit. Using a homeowner loan does away with the requirement of having a deposit.
You can use a homeowner loan as a debt consolidation loan which saves loads of money as it rolls all outstanding debts into one, and makes struggling with numerous debts a thing of the past.
By taking out a homeowner loan you can even use it to buy a holiday home whether your preference is the UK, Europe or even further afield.
These are only a few facts about homeowner loans to hopefully wet your appetite for this excellent low interest secured loan product.
Want to find out more about secured loans, then visit Champion Finance’s site on how to choose the best homeowner loan for your needs.