Will The End Of The Recession See The Revival Of Homeowner Loans Otherwise Secured loans?
Sunday, 07 February 2010 08:45 | 
Written by Liz Moir |
A homeowner loan is as the name suggests a loan for which only homeowners are eligible.
A homeowner loan is as the name suggests a loan for which only homeowners are eligible.
Homeowner loans are also often called secured loans, meaning that no one can obtain this kind of loan without putting up some form of security.
When we are talking about secured what these home loans are secured on is the equity in a property.
Equity is the diffence between any mortgage out standing on the home and the actual bricks and mortar value of the home.
To give an example of available equity would be that if a property is worth 210,000 and the out standing mortgage is 140,000 the equity available would be 70,000 which is not to say in this current economic climate that the homeowner loan borrower would be able to borrow 70,000.
Although the recession is officially over the underwriting of secured loan lenders is still solidly in the time of the recent recession and the maximum loan to value for an employed homeowner loan applicant is still 80% and for self employed people it is 70% absolutely maximum.
Criteria will be changing a little in the very near future as a new homeowner loan lender is set to appear with available loan to values up to 90%.
Secured loan brokers have struggled to survive the recession with homeowner loan approvals now under 20% of the level that they were at at the end of 2006, and homeowner loan lenders have almost all gone to the wall.
It is now a very far cry from three years ago when the secured loan industry thrived and large volumes of these loans were paid out every year from the many now mainly defunct secured loan lenders.
With the recession at an end it is to be hoped that the secured homeowner loan will returned to some what of its former glory.
The secured homeowner loan sector is a poor shadow of the homeowner loan of 2006 when the sector was vibrant unlike now,and it has been sad to see the fall of so many secured loan lenders and brokers.
Three years ago there was even a homeowner loan in which the homeowner loan could borrow up to 25% more than the house was worth
A homeowner loan is as the name suggests a loan for which only homeowners are eligible.
Homeowner loans are also often called secured loans, meaning that no one can obtain this kind of loan without putting up some form of security.
When we are talking about secured what these home loans are secured on is the equity in a property.
Equity is the diffence between any mortgage out standing on the home and the actual bricks and mortar value of the home.
To give an example of available equity would be that if a property is worth 210,000 and the out standing mortgage is 140,000 the equity available would be 70,000 which is not to say in this current economic climate that the homeowner loan borrower would be able to borrow 70,000.
Although the recession is officially over the underwriting of secured loan lenders is still solidly in the time of the recent recession and the maximum loan to value for an employed homeowner loan applicant is still 80% and for self employed people it is 70% absolutely maximum.
Criteria will be changing a little in the very near future as a new homeowner loan lender is set to appear with available loan to values up to 90%.
Secured loan brokers have struggled to survive the recession with homeowner loan approvals now under 20% of the level that they were at at the end of 2006, and homeowner loan lenders have almost all gone to the wall.
It is now a very far cry from three years ago when the secured loan industry thrived and large volumes of these loans were paid out every year from the many now mainly defunct secured loan lenders.
With the recession at an end it is to be hoped that the secured homeowner loan will returned to some what of its former glory.
The secured homeowner loan sector is a poor shadow of the homeowner loan of 2006 when the sector was vibrant unlike now,and it has been sad to see the fall of so many secured loan lenders and brokers.
Three years ago there was even a homeowner loan in which the homeowner loan could borrow up to 25% more than the house was worth
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