Helpful Facts About Homeowner Loans A.K.A. Secured Loans.

The first thing to say is that secured loans otherwise known as homeowner loans are naturally only available to people who own their home on which they have a mortgage.

Homeowners are the only ones eligible for these loans as they need to be secured against an asset which in this case is a property. What equity is is the difference between what a house is worth and the mortgage secured on it. To give an example of what equity is that if a property is worth 390,000, and the mortgage balance is 150,00, the equity is 240,000.

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 account.

There were a few secured loan provider advancing homeowner loans of up to 125% LTV, and it was only homeowners with excellent credit ratings who were considered for these 125% equity loans. The maximum loan that was given by the majority of homeowner loan lenders was between 50,000 to 60,000 on this plan.

Loan to values of this kind have now disappeared and the maximum LTV is now 85% if the homeowner is in employment and 10% less than this if the secured loan applicant is self employed.

The maximum secured loan values nowadays is between 50,000 to 100,000 depending on secured loan lenders.Before the recession loans of up to 250,000 were available if the secured loan applicant had a lot of of equity.

Secured loans can be used for almost any purpose whether it is to buy a car, a motor home, caravan, etc. If a secured loan is used to buy such a thing as a car it means that it can be bought privately at an auction or from a private person saving money compared to buying the same car from a garage, and it also does away with needing a deposit. Currently car loans are normally only available up to about 70% of the purchase price and this can be thousands of pounds needed as a deposit. Using secured loans eliminates the need for a deposit.

For those with a number of debts on credit cards, loans, etc. using homeowner loans as consolidation loans is an excellent idea. Debt consolidation loans combine all other debts into one, and you are left in a much better, and easier financial situation than before. Hundreds can be saved each month.

Secured loans can be used to buy a second home either in your own country or further afield and therefore with using a homeowner loan to buy a second home there is no need for a deposit.

This is only the starting point regarding secured homeowner loans, and everybody can get additional information from an experienced secured loan broker.

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