HJDS Investment Group BLOG

It is only homeowners who are eligible to apply for homeowner loans A.K.A. secured loans.

Tenants cannot apply for homeowner loans as these secured loans are secured, and what they are secured against is the equity in a property. Equity is the difference between the worth of a property, and the balance of the mortgage. If for example the mortgage balance is 150,000 and the property is worth 300,000 the equity in this case is 150,000.

Secured loans used to be available at high loan to values up to 100% , and there were also 90% and 95% LTV plans.Secured loans of up to 100,000 were available. In addition income and credit rating were taken into aaccount.

Certain secured loan lenders including Paragon, EPF and First Plus even gave secured loans at 25% more than the property was worth. This was acceptable when house prices were rising, but when they started to fall these secured homeowner loan lenders were in serious trouble.

Now the equity margin is restricted to a maximum of 70% for self employed homeowner loan borrowers and 80% for employed applicants.

Secured homeowner loans used to be up to a maximum loan value of 250,000. With others the maximum available homeowner loan was 100,000. Secured loans are available now of up to 50,000 with some homeowner loan lenders, and some are prepared to lend up to 100,000.

Homeowner secured loans have a multitude of uses, including buying vehicles such as boats, vans, caravans , cars. In fact using a homeowner loan to buy a car gives you ready cash in hand to buy the car privately instead of from a dealer. The car will be cheaper and you will not even need a deposit.

You can use a homeowner loan as a debt consolidation loan which saves loads of money as it rolls all outstanding debts into one, and makes struggling with numerous debts a thing of the past.

Secured homeowner loans can be used to buy a second home either at home or abroad, and as with using a homeowner loan to buy a car it does away with needing a deposit.

This is really only the tip of the mountain regarding secured homeowner loans, and more information is readily available from secured loan brokers.

Want to find out more about secured loans, then visit Champion Finance’s site on how to choose the best homeowner loan for your needs.