| Remortgages,
secured loans and mortgages have been in a low trough in the
last year or so, more than at any other time.
The main
thing needed for a securd loan, mortgage or remortgage is
enough equity. As secured loans, mortgages and remortgages
are all types of secured loans, equity is extremely important.
Bad credit loans were readily available at 75% LTV.
As such,
at that period, a vast majority of homeowners were eligible
for secured loans.
Bad credit
secured loans had much higher rates of interest.
For example
if a property is worth 200,000 and the mortgage balance stands
at 190,000, the equity is only 10,000. Before the recession
125% equity plans were available and based on this example,
a homeowner could borrow a secured loan of up to 60,000.
The Northern
Rock even had a 125% mortgage and remortgage product.
125% LTV
plans were done away with at the start of the recession.
Initially
at the start of the recession, most secured loan lenders
reduced the accepted LTV's to between 60% to 65% for the self
employed, and to a maximum of 70% for those in employment.
Gradually
this was slackened a little to 70% for self employed applicants
and to 80% for those in employment.
Inspite
of things being a little better, many homeowners still could
not obtain any of these home loans.
Self employed
homeowners were worse affected still with the abolition of
self certifications of net profit, where they declared their
own earnings on a letter head or something of the kind.
Some homeowner
loan providers no longer advanced their product to the self
employed and one such lender was Nemo Loans.
Things
are looking up with such matters as the reintroduction by
Nemo of secured loans for the self employed at the LTV of
75% maximum.
It is
still a far cry from their plan, a few years ago, when they
were prepared to grant self employed homeowner loans at up
to 100% of equity with a self cert, but it is still a step
in the right direction.
At the
same time, there is further good news on the secured loans
front with the announcement, again from Nemo, that as of next
week their LTV for employed borrowers is being increased by
5% to 85%.
With the
continued increase in property prices, remortgages and mortgages
are also facing a brighter future.
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