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The Major Differences In Secured Loans Otherwise Homeowner Loans

Homeowner loans or secured loans if you prefer have been around for about the last thirty years, and have always been a popular way for a homeowner to borrow whenever he has a need for additional funds

While much has remained the same with secured loans since the early 1980s some features about them has changed.

The first feature of homeowner loans that have stayed the same is the fact that they require to be secured against an asset which is the equity on a property

This means that the value of the property must be higher than the mortgage on the property, and equity is therefore the difference between the value of the property and the mortgage balance.

At present secured loans have restricted loan to values with a maximum LTV of 70% for self employed borrowers and ten per cent more than this for those who are employed.

The position before the credit crunch was different regarding secured loans when it was possible to obtain a homeowner at up to 125% LTV meaning that at that point these so called secured loans were in reality actually unsecured.

This difference in the equity levels accepted is one of the biggest changes in secured loans that has happened over all these years.

Another major difference between the past and now as regards secured loans is the number of secured lenders .

At the beginning of the 1980s there were two secured loan lenders, and over the years other lenders sprang up and often disappeared just as suddenly. However over the years things settled down and there was more than a dozen lenders trading with success but the majority have ceased trading one after the other since the start of 2007.

An additional change is in the difference in income proof needed for self employed borrowers who now require accounts instead of the self certification of earnings as in the past.

Article Source: http://articlebarracks.com

Looking to find the best deal on secured loans, then visit www.championfinance.com to find the best deal on homeowner loans for you.

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