It is only homeowners who are eligible to apply for homeowner loans A.K.A. secured loans.
Tenants are not eligible as these homeowner loans must be secured by the equity on a property. Equity is the difference between the mortgage balance and the value of the property. To give an example if a property is worth 230,000 and the mortgage balance is 120,000 the available equity would be 110,000.
Loan to value plans before the recession were available up to 100%, and secured loans of up to 100,000 were readily available subject to other criteria relating to a homeowner loan applicant’s status, income, etc.
There were a few secured homeowner loan lenders willing to advance secured loans of up to 125% LTV, and it was only homeowners with excellent credit ratings who were considerd for these homeonwer loans. The maximum loan that was granted with most homeowner loan lenders was between 50,000 to 60,000 on this plan.
Now the equity margin is restricted to a maximum of 70% for self employed homeowner loan borrowers and 80% for employed applicants.
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 tons of equity.
Secured homeowner loans can be used for almost any purpose whether it is to buy a car, a motorhome, 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 a homeowner loan does away with the requirement of having 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.
Hopefully the reader has found these facts about homeowner loans of some use, but if further information is required the best idea is to contact a specialist homeowner loan broker.
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.