Secured loans , Mortgage and Remortgage –Looking at the past ,now and the Future
If you have gotten a secured loan before in the past before the economic recession , you will have notice that any home owner with a tax criteria and a good credit rating was entitle to get a loan but the situation is not the same now due to the effects of the economic situation to the property and housing sectors of our economy.
Before the pre recession era , equity plans of up to 125% where given out to home owners as secured loans for those that have resided in their address for up to six months and have a good credit rating and in employment earning up to $25,000 yearly.
For example if the property was worth $150,000 and the mortgage balance was $130,000 , the home owner can be given a loan of up to $40,000. As at the pre recession rate home owners secured loan given out on 125% and between 110-115% was common.
During this period also self employed person where also able to get loans up to 90% equity as thy declare their net profits and exaggerated their self certificate and this also happen in cases of remortgage applications .
During this period ,homeowners did remortgage mostly to get lower interest rates and also get additional funds to meet other needs.
But during the post recession era , self certs for secured loan and remortgage
were abolished, and loan to value became much tighter and the number of secured loan lenders reduced gradually from over 20 to a few lenders .
But gradually as the recession period is gradually giving way for economic growth, with the picking up of the economy, worldwide ,we are now explaining more secured loan and re-mortgage loan applications and the granting of secured loans with equity up to 85% for people in paid employment and about 75% for those in self employment.
There are also loans that are available for those that are self employed for at least six months nowadays and with equity of up to 60% and above .
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