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It is almost thirty years since the introduction of secured loans otherwise called homeowner loans and almost from the beginning they became very popular loans for homeowners. As secured loans must be secured against an asset of a property only homeowners can apply. If someone is uncertain of what equity is, it is what is left when the mortgage balance is taken away from the value of the property. Almost three decades ago when secured loans came into being lenders were thin on the ground and there was in fact only two major lenders and these were First Ntional Bank and Cdar Hldings. The secured loans industry saw lenders setting up and them almost as quickly withdrawing from the market. Homeowner loans were very popular as they were multipurpose and cheap , and the homeowner loan lenders prospered. Debt consolidation is best arranged by taking out a secured loan where all debts are rolled into one. all combines into one entity leaving only one repayment. Over the years it appeared that the equity margins for secured loans became slacker and slacker and this financial product eventually became available not only at 100% loan to value but even up to 125% LTV which meant that the homeowner loan applicant could borrow up to 25% more than the value of his property. The year after year of rising property values contributed to the success of the companies advancing these loans but when the credit crunch started and property prices fell many secured loan lenders fell with them. Many homeowner loan lenders went out of business and lenders such as Nemo and Blackhorse made their criteria so strict that many could no longer apply for a secured loan. A couple of months ago these two previously mentioned homeowner loan lenders slackened their equity margins from 70% LTV to 80% for clean staus employed applicants which heralded a slight improvement in the ailing market. Kensingto and Zwift who had left the homeowner loan sector are back in business and some brokers have been granted an agency with them. The most recent news concerning secured loans is that a new lender has entered the market and is prepared to advance this product up to 9% LTV and this is the best piece of news that prospective borrowers and secured loan brokers have heard for almost three years now.
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