Tenants cannot apply for secured loans which are also known as homeowner loans.
Tenants cannot apply for homeowner loans as these secured loans are secured, and what they are secured against is the equity in a property. Equity is the difference between the worth of a property, and the balance of the mortgage. If for example the mortgage balance is 150,000 and the property is worth 300,000 the equity in this case is 150,000.
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.
Certain secured loan lenders including Paragon, EPF and First Plus even gave secured loans at 25% more than the property was worth. This was acceptable when house prices were rising, but when they started to fall these secured homeowner loan lenders were in serious trouble.
These loan to values have now gone and the maximum LTV is now 80% if the homeowner is in employment and 10% is deducted if the homeowner loan borrower is self employed.
The maximum secured loan values nowadays is between 50,000 to 100,000 depending on secured loan lenders.Before the recession loans of up to 250,000 were available if the secured loan applicant had tons of equity.
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.
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.
Secured homeowner loans can be used to buy a second home either at home or abroad, and as with using a homeowner loan to buy a car it does away with needing a deposit.
Hopefully the reader has found these facts about homeowner loans of some use, but if further information is required the best idea is to contact a specialist homeowner loan broker.
Looking to find the best deal on secured loans, then visit www.championfinance.com to find the best advice on homeowner loans for you.
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