- 01
- May
There have been more changes in the mortgage, remortgage and secured loan sectors in recent years than at any other time since their inception.
Secured loans or homeowner loans as they are also called have under gone a great number of different changes recently.
Since the beginning of 2007, the number of companies providing secured loans has decreased from over twenty to less than five.
The secured loan plans available has also diminished as the secured loan lenders on the market tightened up their criteria to cut back on the element of risk entailed.
Up to the start of 2007 it was possible for homeowners to obtain secured loans at up to 25% more than their home was worth.
Loans to value are now restricted to much less than this, and stand at 70% and 80% for self employed and employed applicants respectively.
Self declarations of income were all but done away with for the self employed which meant that it was no longer sufficient to write their own net profit on a bill head or similar and full accounts were needed, This meant that it was virtually impossible for the self employed who could not fully prove their earnings or who presented their own accounts to obtain a loan.
Self certs were similarly abolished for remortgage and mortgage applicants and as regards remortgages and mortgages this will most likely never alter at any time in the future.
Rates of interest are now stabilising for secured loans, remortgages and remortgages after an unsettled period.
After a period of constant fluctuation remortgages and mortgages are now settling down with more remortgage and mortgage products being introduced after they had been reduced by about 1,000.
Interest rates for remortgages, mortgages and secured loans are now starting to settle after altering as never before over the past few years. If the trend all continues in the way, it is to hoped that the sector of remortgages, secured loans and mortgages will be as it once was before too long.
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