The home loan products of secured loans, also known as homeowner loans, have been in an almost wilderness like state over the past few years.
These once so buoyant and popular loans were reduced to a shadow of their former self since the start of the recession
One of the reasons for their popularity was the fact that they were any purpose loans and when making application there was no need to even provide concrete proof as to what the loan wa being used for.
Secured loans were useful to fund anything from paying for an expensive dream wedding, a special holiday to buy a vehicle, etc.
A common use for secured loans was as a debt consolidation loan, and they worked in pretty much the same way as a remortgage does for debt consolidation.
Secured loans need equity in a property, and equity is the difference between the balance of a home and the mortgage secured on it.
In the past, secured loans were available to those who in reality had no equity with the availability of 125% loans which allowed advnces of up to 25% of the property value.
This all stopped, and until now the best LTV is 70% for the self employed and 80% for those in employment,
The self employed were even more adversely affected by this than were the employed,, as in addition to being more equity restricted, self declarations of income were also abolished.
Other good news announced only today is the fact that there wil lbe secured loans available from Nemo up to 85% LTV.
They are also re introducing self employed loans up to 75% LTV.
Additional good news on the secured loans front is the fact that self employed loans will be available from Nemo at 75% loan to value.
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