Secured loans which are also commonly called homeowner loans are not a new concept as homeowner loans were first introduced in their current form about three decades ago and they have always proved popular with homeowners needing finance.
Secured homeowner loans have to a great extent the same over all these years but like everything else some things about homeowner loans have altered.
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 property must be worth more than the mortgage balance, and it now becomes apparent why these are called both homeowner loans or secured loans.
Since the credit crunch homeowner loans are available at 80% LTV for employed applicants and a maximum 70% for those who are self 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.
Therefore one major difference in secured loans since their inception until now is the equity difference.
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.
Another main difference is the income proof required by self employed applicants which used to have self declarations available but now the self employed are required to produce full accounts.
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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Tags: Debt, Debt Consolidation, homeowner loan, homeownr loans, remortgage, remortgages, secured loans