Secured Loans Information
In the last couple of years the remortgage and secured loans market have seen so many changes in the sector mainly with lenders not lending up to the equity that they were lending to before, when some secured loan lenders were lending up to 125% of the property value.
With so many changes in the market,many people who were in business selling remortgages, mortgages and secured loans have had to stop selling them and to try out another type of business.
These days were good for the market as more homeowners could look at secured loans or by remortgaging as a way to raise extra finance. The underwriting has changed, and lenders are not lending up to these equity margins for secured loans.
Before the changes happened in the sector, the industry was very competitive and the underwriting was very slack.
Before it was much easier to obtain a secured loan or remortgage as some secured loan lenders were lending up to 125% of a property value with some mortgage lenders lending up to 100%.
With the underwriting being slack as this, more first time buyers were able to buy a property. but today they would need to have money for a good deposit.
These days, the best equity is 85% although for a remortgage you might be able to borrow a little more.
A couple of years ago house prices were rising even if some homeowners lived in their property for as little as six months or had done home improvements, but house prices are not rising as fast as they once were which has a bad affect on the market.
Remortgages and homeowner loans, as they are secured, means that the lender feels more comfortable at lending if there is equity and what your credit rating was like as it was based on your credit score.
There is some improvements in the market and let us hope that with house prices rising more homeowners will be looking for a secured loan or a better deal on their mortgage.