Secured Loans And New Improvements.

Since the recession, secured loans have had their ups and downs with more changes witnessed in the industry than ever before.

Secured homeowner loans, since their inception almost thirty years ago, were always considered to be one of the first choices for homeowners who wanted to borrow for what ever purpose.

Secured loans had good interest rates, as being secured, the lender felt confident that the loan would always be repaid before almost any other loan, mortgage apart.

Their variety of uses was also what contributed to their popularity.

Homeowners often used secured loans as debt consolidation loans which meant that one low interest debt consolidation loan replaced all the high interest rate credit cards, personal loans, etc.

Until the beginning of 2007, homeowners could even apply for a secured loan at up to 125% of the equity on his property.

Homeowners who were self employed could not obtain a secured loan at 125%, but they were able to obtain a loan at 90% equity with a self certification of earnings.

The credit crunch ended all this, and it was impossible to consider 125% plans as house prices tumbled.

Secured loan lenders also did away with accepting homeowner loans for self employed applicants without full accounts, as self certifications were no longer acceptable. Many self employed people simply could no longer obtain a loan.

Many secured loan lenders exited the market never to return.

Link Loans withdrew from the market due to lack of funding, but they are now back and funded by RBS. They have introduced a homeowner loan for self employed applicants, providing that they have been trading for at least six months, and can produce three months bank statements. Another condition is that the LTV can be no more than 60%.

Secured loans are hopefully once again moving in the right direction with the advent of these self employed loans.

Learn more about debt consolidation. Stop by Champion Finance’s site where you can find out all about remortgages for you.