Article by Liz Moir
Until the start of 2007 secured loans, also known as homeowner loans were the loans of choice for homeowners.
They are called homeowner loans due to the fact that only homeowners are eligible to apply and secured because they require to be secured upon an asset.
The asset in question is the security of the secured loan applicant's property.
These loans originated away back about thirty years ago, when the only secured loan lenders at that time were Cedar Holdings and FNB who was then known as First National Securities.
Over the years that followed other homeowner loan lenders entered the market mnany of whom withdrew just as suddenly as they had arrived.
During the nineteen ninties, the secured homeowner loan market stabilised and there was a solid steady number of lenders offering these ever so popular loans.
Companies such as FNB EPF, Paragon, Future Mortgages, Nemo, Blemain, First Plus, etc. the business was great and there was a demand for these loans.
They all had different under writing criteria, but as there were so many different secured loan plans on offer from all these lenders, the vast majority of homeowners were eligible for a homeowner loan.
There were 125% equity plans,which meant that the borrower could obtain a loan of over 25% of the value of the property.
The self employed could declare their own income often with very little if any back up proof.
Some lenders even accepted unlimited adverse credit in the shape of mortgage arrears, late loan payments, defaults and CCJS.
In the course of the last three years many secured loan lenders ceased trading and the under writing of those left became much more strict.
The self employed had now to present two years accounts instead of self declaring their earnings.
This forced many who could have made good use of a secured loan, for debt consolidaion in particular, were denied a loan and were often forced to seek debt advice from one of the many hard pressed free! debt ad vice agencies.
Link Loans were one of the many secured loan lenders who exited the market during the recession, but only last week they reappeared due to having obtained funding from RBS.
The are accepting those who have only been self employed for six months and the proof of self employment required is a business invoice accompanied by three months bank statements.
Link Loans are even prepared to accept some bad credit and the LTV is 70% for self employed and 75% for employed applicants.
This should mean that many who have wanted to apply for a secured loan for up to three years now can apply again.
These loans will now mean that many who have been seeking debt advice will now be able to obtain the debt consolidtion loan that the debt advice advisor recommended.
About the AuthorWhen you are looking for debt consolidation, a secured loan, remortgage or mortgage look no further than Champion Finance who have been established since 1985.They also provide debt help, debt advice and debt solutions of all kinds to help those in debt solve their debt problems.
No comments:
Post a Comment