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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.

Now the equity margin is restricted to a maximum of 75% for self employed homeowner loan borrowers and 85% for employed applicants., having only recently been increased from 70% and 80%.

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 have a vast array of usages, including buying vehicles such as boats, vans, caravans , cars. In fact using a homeowner loan to buy a car gives you ready cash in hand to buy the car privately instead of from a dealer. The car will be cheaper and you will not even need a deposit.

Secured loans can be used as debt consolidation loans which saves a lot of money as they combine all outstanding debt into one, and make coping with too many debts something that will no longer exist.

If a homeowner has the desire to own a second home at home or away, this can be easily arranged with a secured loan which can pay 100% of the second home purchase and there is no deposit needed when buying a property in this way.

This is only the tip of the ice berg as regards secured loans but it is hoped that it will be of help.

homeowner loans

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